Algorithmic pricing and concerted behaviour – competitive challenges? Cover Image

Алгоритмично ценообразуване и съгласувано поведение – предизвикателства пред конкуренцията?
Algorithmic pricing and concerted behaviour – competitive challenges?

Author(s): Aleksandar B. Todorov
Subject(s): Economy, Business Economy / Management, Marketing / Advertising
Published by: Институт за икономически изследвания при Българска академия на науките
Keywords: digitalization; artificial intelligence; competition; coordination; collusion; cartel; algorithmic pricing

Summary/Abstract: The application of advanced pricing algorithms is becoming an increasingly common practice in the real economy. On the one hand, this is associated with improvements in the efficiency of firms, but on the other hand, it may pose a threat to market competition and thus have undesirable consequences for consumers. This article keeps track of the current interdisciplinary discussion on the possibility of pricing algorithms to achieve colluding behaviour. This possibility seems not only theoretically possible but also ever more practically feasible. At the same time, policy instruments are, at least for the moment, limited and pose new challenges to competition authorities.

  • Issue Year: 2022
  • Issue No: 1
  • Page Range: 90-107
  • Page Count: 18
  • Language: Bulgarian