Wednesday, July 25, 2018
Ai Deng, Bates White Economic Consulting; Advanced Academic Programs, Johns Hopkins University asks What Do We Know About Algorithmic Tacit Collusion?
ABSTRACT: The past few years have seen many legal scholars and antitrust agencies expressing interest in and concerns with algorithmic collusion. In this paper, I survey and draw lessons from the literature on Artificial Intelligence and on the economics of algorithmic tacit collusion. I show that a good understanding of this literature is a crucial first step to better understand the antitrust risks of algorithmic pricing and devise antitrust policies to combat such risks.