Artificial intelligence, algorithmic pricing, and collusion | VOX, CEPR Policy Portal

Researchers Emilio Calvano, Giacomo Calzolari, Vincenzo Denicolò, Sergio Pastorello of the University of Bologna in Italy conducted an experiment where they let loose two simple reinforcement-learning-based pricing algorithms in a controlled environment. They learned that the these two completely autonomous algorithms actually responded to their mutual behavior.  Together, they started quickly to pull up the […]