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Pricing algorithms have demonstrated the capability to learn tacit collusion that is largely unaddressed by current regulations. Their increasing use in markets, including oligopolistic industries with a history of collusion, calls for…

Computer Science and Game Theory · Computer Science 2025-02-26 Paul Friedrich , Barna Pásztor , Giorgia Ramponi

Pricing decisions are increasingly made by AI. Thanks to their ability to train with live market data while making decisions on the fly, deep reinforcement learning algorithms are especially effective in taking such pricing decisions. In…

Artificial Intelligence · Computer Science 2021-07-06 Michael Schlechtinger , Damaris Kosack , Heiko Paulheim , Thomas Fetzer

This paper examines how data inputs shape competition among artificial intelligences (AIs) in pricing games. The dataset assigns labels to consumers and divides them into different markets, thereby inducing multimarket contact among AIs. We…

General Economics · Economics 2025-12-30 Zhang Xu , Mingsheng Zhang , Wei Zhao

Artificial intelligence algorithms are increasingly used by firms to set prices. Previous research shows that they can exhibit collusive behaviour, but how quickly they can do so has so far remained an open question. I show that a modern…

General Economics · Economics 2026-04-20 Kevin Michael Frick

Nowadays, a significant share of the Business-to-Consumer sector is based on online platforms like Amazon and Alibaba and uses Artificial Intelligence for pricing strategies. This has sparked debate on whether pricing algorithms may tacitly…

General Economics · Economics 2024-06-05 Shidi Deng , Maximilian Schiffer , Martin Bichler

Algorithmic price collusion facilitated by artificial intelligence (AI) algorithms raises significant concerns. We examine how AI agents using Q-learning engage in tacit collusion in two-sided markets. Our experiments reveal that AI-driven…

General Economics · Economics 2024-07-08 Cristian Chica , Yinglong Guo , Gilad Lerman

We study equilibria in an Electric Vehicle (EV) charging game, a cost minimization game inherent to decentralized charging control strategy for EV power demand management. In our model, each user optimizes its total cost which is sum of…

Theoretical Economics · Economics 2022-12-13 Trivikram Dokka , Jorge Bruno , Sonali SenGupta , Chowdhury Mohammad Sakib Anwar

Nowadays, a significant share of the business-to-consumer sector is based on online platforms like Amazon and Alibaba and uses AI for pricing strategies. This has sparked debate on whether pricing algorithms may tacitly collude to set…

General Economics · Economics 2025-03-17 Shidi Deng , Maximilian Schiffer , Martin Bichler

Algorithmic pricing is increasingly shaping market competition, raising concerns about its potential to compromise competitive dynamics. While prior work has shown that reinforcement learning (RL)-based pricing algorithms can lead to tacit…

Machine Learning · Computer Science 2025-04-09 Sebastián Tinoco , Andrés Abeliuk , Javier Ruiz del Solar

The threat of algorithmic collusion, and whether it merits regulatory intervention, remains debated, as existing evaluations of its emergence often rely on long learning horizons, assumptions about counterparty rationality in adopting…

Multiagent Systems · Computer Science 2026-03-11 Yuhong Luo , Daniel Schoepflin , Xintong Wang

In this paper, an electric vehicle (EV) charging competition, among EV aggregators that perform coordinated EV charging, is explored while taking into consideration potential non-ideal actions of the aggregators. In the coordinated EV…

Computer Science and Game Theory · Computer Science 2017-12-20 Chathurika P. Mediwaththe , David B. Smith

In the rapidly evolving landscape of eCommerce, Artificial Intelligence (AI) based pricing algorithms, particularly those utilizing Reinforcement Learning (RL), are becoming increasingly prevalent. This rise has led to an inextricable…

Machine Learning · Computer Science 2024-06-06 Michael Schlechtinger , Damaris Kosack , Franz Krause , Heiko Paulheim

In this paper, a static non-cooperative game formulation of the problem of distributed charging in electrical vehicle (EV) networks is proposed. This formulation allows one to model the interaction between several EV which are connected to…

Computer Science and Game Theory · Computer Science 2015-09-25 Olivier Beaude , Samson Lasaulce , Martin Hennebel

This dissertation is to study the interplay between large-scale electric vehicle (EV) charging and the power system. We address three important issues pertaining to EV charging and integration into the power system: (1) charging station…

Econometrics · Economics 2018-08-20 Chao Luo

An important scenario for smart grids which encompass distributed electrical networks is given by the simultaneous presence of aggregators and individual consumers. In this work, an aggregator is seen as an entity (a coalition) which is…

Computer Science and Game Theory · Computer Science 2015-09-25 Olivier Beaude , Cheng Wan , Samson Lasaulce

Two issues of algorithmic collusion are addressed in this paper. First, we show that in a general class of symmetric games, including Prisoner's Dilemma, Bertrand competition, and any (nonlinear) mixture of first and second price auction,…

Theoretical Economics · Economics 2024-09-05 Zhang Xu , Wei Zhao

We propose a fresh `meta-game' perspective on the problem of algorithmic collusion in pricing games a la Bertrand. Economists have interpreted the fact that algorithms can learn to price collusively as tacit collusion. We argue instead that…

Theoretical Economics · Economics 2025-12-16 Cesare Carissimo , Fryderyk Falniowski , Siavash Rahimi , Heinrich Nax

As algorithms increasingly mediate competitive decision-making, their influence extends beyond individual outcomes to shaping strategic market dynamics. In two preregistered experiments, we examined how algorithmic advice affects human…

Human-Computer Interaction · Computer Science 2025-11-13 Tobias R. Rebholz , Maxwell Uphoff , Christian H. R. Bernges , Florian Scholten

The extraordinary electric vehicle (EV) popularization in the recent years has facilitated research studies in alleviating EV energy charging demand. Previous studies primarily focused on the optimizations over charging stations (CS) profit…

Multiagent Systems · Computer Science 2024-06-18 Tianhao Bu , Hang Li , Guojie Li

Algorithmic agents are used in a variety of competitive decision-making settings, including pricing contexts that range from online retail to residential home rental. We study the emergence of algorithmic collusion when competing agents…

General Economics · Economics 2026-03-10 Connor Douglas , Foster Provost , Arun Sundararajan
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