Below is a post by Ai Deng, Phd of NERA Economic Consulting on Algorithmic Antitrust Compliance
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I had the distinct honor of offering live testimony last November on the issue of algorithmic collusion at the FTC’s Hearings on Competition and Consumer Protection in the 21st Century. And having written a lot about the “dark side” of algorithms (see, here [https://ssrn.com/abstract=3029662], here [https://ssrn.com/abstract=3082514], and here [https://ssrn.com/abstract=3171315]), I think it is time to explore how algorithms could help with antitrust compliance. This is the topic of my most recent article. You can download the full working paper at https://papers.ssrn.com/abstract=3334164
Abstract
If pricing algorithms could autonomously collude, can they be made automatic antitrust compliant as well? That is the question many have started pondering after a series of public comments by EU competition officials in recent years. In this paper, I propose a multi-faceted approach to algorithmic compliance. I draw lessons from the recent AI literature and discuss some potential technical frameworks for compliant algorithmic design.
Keywords: algorithmic pricing, algorithmic collusion, artificial intelligence, antitrust, compliance
As always, I appreciate your thoughts and comments. You can reach me at ai.deng@nera.com or connect with me on LinkedIn [here]
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Ai Deng, PhD
Associate Director
NERA
ECONOMIC CONSULTING
1255 23rd Street NW,
Washington, DC, 20037
Tel: +1 (202) 4669210
Fax: +1 (202) 4669252
ai.deng@nera.com
www.nera.com