Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

Tuesday, October 13, 2020

AI and Interdependent Pricing: Combination Without Conspiracy?

AI and Interdependent Pricing: Combination Without Conspiracy?

 

Joshua P. Davis

University of San Francisco - School of Law

Anupama Reddy

Abstract

Artificial Intelligence (AI) holds the potential to enhance the ability of competitors to coordinate prices without forming agreements. That could cause widespread market failures. Competitors in a broad range of industries could use AI to cause the same harms brought about horizontal price fixing without triggering legal liability. This Article suggests a solution to this potential problem: adopting the long-contemplated policy of imposing civil liability when competitors achieve supracompetitive prices regardless of whether they enter an agreement to do so.

https://lawprofessors.typepad.com/antitrustprof_blog/2020/10/ai-and-interdependent-pricing-combination-without-conspiracy.html

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