arXiv AI By Jackie Baek, Vivek F. Farias, Farrell Wu

Misspecified Estimate-then-Optimize Leads to Supra-Competitive Prices

Read the original on arXiv AI →

arXiv:2605. 16064v2 Announce Type: replace-cross Abstract: We study whether simple algorithmic pricing systems can systematically produce collusive-like prices in multi-firm markets.

Summary generated by The Flow from the publisher's feed. The full article lives at arXiv AI.

arXiv AI
Jun 9

Supracompetitive Pricing Under AI Monoculture

arXiv:2601. 01279v3 Announce Type: replace-cross Abstract: When competing sellers delegate pricing to a shared AI model, such as a large language model, correlated recommendations combined with performance-driven updates aggregating seller feedback raise a key question: can standard AI deployment practices inadvertently produce supracompetitive pricing?

By Shengyu Cao, Ming Hu