In Machines We Trust: How pricing algorithms learn to collude
MIT Technology Review Narrated
00:00
The Effects of Self-Learning Algorithms on Market Prices
Researchers in Italy have already found evidence of that happening in a simulated environment. He says these self-learning algorithms behave in a way that mirrors human cartels. Algorithms are setting a high price above competitive prices, which creates then an incentive to set a lower price and pick up market share.
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