Seminar 217, Risk Management: "Artificial Intelligence, Algorithmic Pricing and Collusion" (Online)

Seminar 217, Risk Management: "Artificial Intelligence, Algorithmic Pricing and Collusion" (Online)

Risk Seminar
Oct 19, 2021, 11:00 AM - 12:30 PM | Online via Zoom | Happening As Scheduled
Emilio Calvano, University of Bologna (Speaker - Featured)

ABSTRACT: Increasingly, algorithms are supplanting human decision-makers in pricing goods and services. To analyze the possible consequences, we study experimentally the behavior of algorithms powered by Artificial Intelligence (Q-learning) in a workhorse oligopoly model of repeated price competition. We find that the algorithms consistently learn to charge supracompetitive prices, without...