Artificial Intelligence, Algorithmic Pricing, and Collusion
"A literature review of “Artificial Intelligence, Algorithmic Pricing and Collusion” by Emilio Calvano,
Giacomo Calzolari, Vicenzo Denicolò, and Sergio Pastorello"
Abstract and Citation
Abstract
Firms are increasingly turning to artificial intelligence to analyze marketplace trends and determine pricing strategies. This paper demonstrates how AI pricing algorithms may actually learn, with no human instruction, to set anti-competitive prices under standard economic conditions. The authors’ findings highlight the need for antitrust reform that recognizes the potential for algorithms to autonomously collude.
