In Machines We Trust: How pricing algorithms learn to collude (Update)
MIT Technology Review Narrated
00:00
The Concept of Automated Collusion
The self-learning algorithms are setting a high price above competitive prices, which creates then an incentive to set a lower price in order to pick up more market share. The concept of automated collusion raises all sorts of legal questions. It's still an open question as to whether this kind of thing could happen in a real market with all its additional complexity.
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