Year: 2025
Type: article
Abstract: I analyze the effect of using artificial intelligence algorithms in two-sided platform markets. When the algorithms rely solely on the firm's payoff values, the resulting prices are significantly higher than the theoretical equilibrium, a phenomenon known in the literature as algorithmic collusion. However, when the algorithms have access to more information, I find that market prices are similar to the theoretical predictions.
Source: Económica
Author: Alejandro Cichevski
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4413313675