Algorithmic Pricing: What Implications for Competition Policy?

Abstract

Pricing decisions are increasingly in the “hands” of artificial algorithms. Scholars and competition authorities have voiced concerns that those algorithms are capable of sustaining collusive outcomes more effectively than human decision makers. If this is so, then our traditional policy tools for fighting collusion may have to be reconsidered. We discuss these issues by critically surveying the relevant law, economics and computer science literatures.

Reference

Emilio Calvano, Giacomo Calzolari, Vincenzo Denicolò, and Sergio Pastorello, “Algorithmic Pricing: What Implications for Competition Policy?”, Review of Industrial Organization, vol. 55, n. 1, August 2019, pp. 155–171.