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https://doi.org/10.2139/ssrn.4...
Article . 2024 . Peer-reviewed
Data sources: Crossref
https://dx.doi.org/10.48550/ar...
Article . 2023
License: arXiv Non-Exclusive Distribution
Data sources: Datacite
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Algorithmic collusion under competitive design

Authors: Conjeaud, Ivan;

Algorithmic collusion under competitive design

Abstract

We study a simple model of algorithmic collusion in which Q-learning algorithms are designed in a strategic fashion. We let players (\textit{designers}) choose their exploration policy simultaneously prior to letting their algorithms repeatedly play a prisoner's dilemma. We prove that, in equilibrium, collusive behavior is reached with positive probability. Our numerical simulations indicate symmetry of the equilibria and give insight for how they are affected by a parameter of interest. We also investigate general profiles of exploration policies. We characterize the behavior of the system for extreme profiles (fully greedy and fully explorative) and use numerical simulations and clustering methods to measure the likelihood of collusive behavior in general cases.

Keywords

FOS: Economics and business, Economics - Theoretical Economics, Theoretical Economics (econ.TH)

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
Green