Related papers: Vertical tacit collusion in AI-mediated markets
When online sellers use AI learning algorithms to automatically compete on e-commerce platforms, there is concern that they will learn to coordinate on higher than competitive prices. However, this concern was primarily raised in…
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,…
This study investigates malicious AI Assistants' manipulative traits and whether the behaviours of malicious AI Assistants can be detected when interacting with human-like simulated users in various decision-making contexts. We also examine…
AI systems are increasingly intertwined with daily life, assisting users with various tasks and guiding decision-making. This integration introduces risks of AI-driven manipulation, where such systems may exploit users' cognitive biases and…
As Large Language Models (LLMs) become a primary interface between users and the web, companies face growing economic incentives to embed commercial influence into AI-mediated conversations. We present two preregistered experiments (N =…
With the digitalization of the financial market, dealers are increasingly handling market-making activities by algorithms. Recent antitrust literature raises concerns on collusion caused by artificial intelligence. This paper studies the…
As multi-agent AI systems become increasingly autonomous, evidence shows they can develop collusive strategies similar to those long observed in human markets and institutions. While human domains have accumulated centuries of…
Thanks to advances in large language models, a new type of software agent, the artificial intelligence (AI) agent, has entered the marketplace. Companies such as OpenAI, Google, Microsoft, and Salesforce promise their AI Agents will go from…
When human agents come together to make decisions, it is often the case that one human agent has more information than the other. This phenomenon is called information asymmetry and this distorts the market. Often if one human agent intends…
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…
This paper explores the capacity of artificial intelligence (AI) algorithms to autonomously design incentive-compatible contracts in dual-principal-agent settings, a relatively unexplored aspect of algorithmic mechanism design. We develop a…
The rise of autonomous, AI-driven agents in economic settings raises critical questions about their emergent strategic behavior. This paper investigates these dynamics in the cooperative context of a multi-echelon supply chain, a system…
Competition between traditional platforms is known to improve user utility by aligning the platform's actions with user preferences. But to what extent is alignment exhibited in data-driven marketplaces? To study this question from a…
Deep generative models are becoming increasingly used as tools for financial analysis. However, it is unclear how these models will influence financial markets, especially when they infer financial value in a semi-autonomous way. In this…
Environments built for people are increasingly operated by a new class of economic actors: LLM-powered software agents making decisions on our behalf. These decisions range from our purchases to travel plans to medical treatment selection.…
Recent large-scale events like election fraud and financial scams have shown how harmful coordinated efforts by human groups can be. With the rise of autonomous AI systems, there is growing concern that AI-driven groups could also cause…
Prediction markets allow users to trade on outcomes of real-world events, but are prone to fragmentation through overlapping questions, implicit equivalences, and hidden contradictions across markets. We present an agentic AI pipeline that…
Autonomous AI agents now plan, decide, and act on behalf of users across healthcare, financial services, and workplace contexts, often without step-by-step human approval. Existing AI literacy frameworks were built for a world in which…
The integration of large language models (LLMs) into healthcare IoT systems promises faster decisions and improved medical support. LLMs are also deployed as multi-agent teams to assist AI doctors by debating, voting, or advising on…
Advancements in Artificial Intelligence (AI) technologies' social fluency are being integrated into commercial interactions. As tools such as OpenAI's assistant are integrated into platforms such as Shopify, Klarna, and Visa, understanding…