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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....
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Increasingly, algorithms make socially consequential decisions. This makes it crucial to determine when their decisions are discriminatory and how to prevent this outcome. While algorithmic decision-making has proven to be a challenge for traditional anti-discrimination law, there is an...
Persistent link: https://www.econbiz.de/10014106270
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....
Persistent link: https://www.econbiz.de/10012990230
I investigate whether algorithmic trading (AT) affects voluntary disclosure. I predict that AT's advantage over non-algorithmic investors decreases information acquisition. Because investors are less informed, managers increase disclosure to reduce information asymmetry. I find evidence...
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position in search results, the cause is often an algorithm whose function is entirely internal to the dominant firm. In such …
Persistent link: https://www.econbiz.de/10012868973
This paper develops an algorithm that enables to solve macroeconomic models with Rotemberg pricing and imperfect common … knowledge. Under the concept of imperfect common knowledge, Rotemberg pricing requires the solution algorithm to take prices … algorithm has to search for the policy function of the aggregate price and for the policy function of the firm-specific price …
Persistent link: https://www.econbiz.de/10012841148