Pricing Algorithms as Collusive Devices

Pricing Algorithms as Collusive Devices

Cento Veljanovski

Case Associates; Institute of Economic Affairs

Abstract

This paper undertakes a critical review of the prospect that self-learning pricing algorithms will lead to widespread collusion independently of the intervention and participation of humans. There is no concrete evidence, no example yet, and no antitrust case that self-learning pricing algorithms have colluded let alone increased the prospect of collusion across the economy.