Pricing Algorithms as Collusive Devices

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.

Keywords: antitrust, competition law, algorithmic collusion, algorithmic pricing, collusion, competition policy, pricing bots, self-learning algorithms

JEL Classification: D42, D82, L2, D43, D50, D81, K21, L1, L13, L16, 030