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....

Predictive AI is increasingly used to guide decisions on agents. I show that even a bias-neutral predictive AI can potentially amplify exogenous (human) bias in settings where the predictive AI represents a cost-adjusted precision gain to unbiased predictions, and the final judgments are made by...

Established nowcasting techniques generally use as inputs two types of economic data: directly quantifiable variables, mostly referred to as hard data, and survey-based measures of the economy, or soft data. In this paper we increase the dimensionality of the nowcasting input data set by...