Collusion by Algorithm : Does Better Demand Prediction Facilitate Coordination Between Sellers?

We build a game-theoretic model to examine how better demand forecasting due to algorithms, machine learning and artificial intelligence affects the sustainability of collusion in an industry. We find that while better forecasting allows colluding firms to better tailor prices to demand conditions, it also increases each firm's temptation to deviate to a lower price in time periods of high predicted demand. Overall, our research suggests that, despite concerns expressed by policymakers, better forecasting and algorithms can lead to lower prices and higher consumer surplus

MoreLess

Year of publication:	2018
Authors:	Miklós-Thal, Jeanine
Other Persons:	Tucker, Catherine (contributor)
Publisher:	[2018]: [S.l.] : SSRN
Subject:	Wettbewerbsbeschränkung \| Restraints of competition \| Algorithmus \| Algorithm \| Koordination \| Coordination \| Nachfrage \| Demand \| Kartell \| Cartel \| Prognoseverfahren \| Forecasting model \| Spieltheorie \| Game theory \| Preiskartell \| Price-fixing cartel \| Auktionstheorie \| Auction theory

freely available

Full text |

More access options

doi.org

Check Google Scholar

In German libraries (KVK)

I need help

Which error do you want to report?

Report: URL of this record is broken

Please note: Sometimes more than one URL is available for a resource. Please click on "More Options" to display these URLs

Report: Addition of an URL to that resource

Please note: Sometimes more than one URL is available for a resource. Please click on "More Options" to display these URLs

Report: The language(s) of that resource is/are…

Please note: Required language not in the list? Please use comment field

Report: Addition of an identifier to that resource

Report: report typo

Report: Add statement

Report: Add keywords

Please use the commentary box to describe other errors

Would you like to receive a feedback?

Commentary

Please type the code from the image

For general questions please use this address.

Persistent link: https://www.econbiz.de/10012910026