
doi: 10.2139/ssrn.4213600
handle: 10419/265843
We examine recent claims that a particular Q-learning algorithm used by competitors 'autonomously' and systematically learns to collude, resulting in supracompetitive prices and extra profits for the firms sustained by collusive equilibria. A detailed analysis of the inner workings of this algorithm reveals that there is no immediate reason for alarm. We set out what is needed to demonstrate the existence of a colluding price algorithm that does form a threat to competition.
L13, algorithm, ddc:330, Collusion, K21, L44, collusion, Algorithm, C63, pricing, Q-learning, Pricing
L13, algorithm, ddc:330, Collusion, K21, L44, collusion, Algorithm, C63, pricing, Q-learning, Pricing
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