In Machines We Trust: How pricing algorithms learn to collude
MIT Technology Review Narrated
00:00
The Effect of Pricing Algorithms on Competition
Harrington: The case involving the Amazon poster sellers is something that's pretty close to traditional collusion. But there's growing research that pricing algorithms could learn to form a digital cartel of their own, and collude to raise prices without any human involvement. Harrington: A self-learning algorithm would experiment with different pricing rules in the hope of finding ones that are more profitable.
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