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(Mis)understanding Algorithmic Collusion

BY | July 13, 2020

For a few years now, there has been a lot of talk about pricing algorithms and their potential for collusion. This article first provides a simple typology of pricing algorithms,…

For a few years now, there has been a lot of talk about pricing algorithms and their potential for collusion. This article first provides a simple typology of pricing algorithms, in order to take away much of the confusion that is still surrounding the debate. It then goes on to discuss three potential misunderstandings: (i) that there are basically no cases involving algorithmic collusion and hence that there is no real problem; (ii) that nothing changes, legally speaking, if algorithms collude

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