We analyze the effects of better algorithmic demand forecasting on collusive profits. We show that the comparative statics crucially depend on the whether actions are observable. Thus, the optimal antitrust policy needs to take into account the institutional settings of the industry in question....

As technology-assisted decision-making is becoming more widespread, it is important to understand how the algorithmic nature of the decision-maker affects how decisions are perceived by the affected people. We use a laboratory experiment to study the preference for human or algorithmic decision...

The conversation around and study of the use of algorithms in pricing and other competitively sensitive decisions remains vibrant and is increasingly well-informed. Early theoretical work paved the way for government studies and more recently – and most interestingly – experimental and...

Platforms play an essential role in the modern economy. At the same time, algorithms are becoming more widely used for pricing and other business functions. Previous literature examined algorithmic pricing, but not in the context of network effects and platforms. Moreover, platform competition...

This article establishes the Poisson optional stopping times (POST) method by Lange et al. (2020) as a near-universal method for solving liquidity-constrained American options, or, equivalently, penalised optimal-stopping problems. In this setup, the decision maker is permitted to “stop”,...

Clustered data from a product’s reliability experiments may arise from many sources of heterogeneity in practice such as different test units suppliers, pieces of equipment, and operators. It is of interest for reliability practitioners to investigate how to plan such experiments with the aim...

While artificial intelligence (AI) algorithms are seen as a convincing new opportunity to reduce human bias, automated decision-making can also have unintended and unexpected results, especially in the context of online platforms. In the case of science, technology, engineering, and mathematics...

From Uber, to Starbucks, to Home Depot, companies increasingly ask customers to rate workers. Gathering data from these ratings, many firms utilize algorithms to make employment decisions. This proliferation of customer ratings raises the possibility that some customers may review workers...

The absolute value equation (AVE) is a nondifferentiable NP-hard and continuous optimization problem with a wide range of application, including linear programming, quadratic programming, and game theory. The AVE has several solution forms, such as single-peak, multi-peak, and high-dimension. In...

PVG allocation generally involves optimal PV power sizing and locations for PVG installations in power distribution networks, which can be formulated as single or multiple related objective functions under specific power system constraints. This paper proposes an improved backtracking search...