Araştırma Makalesi

Detecting Algorithmic Collusion: Insights from Moment Screening Methods

Cilt: 8 Sayı: 3 27 Eylül 2024
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Detecting Algorithmic Collusion: Insights from Moment Screening Methods

Abstract

The development of global, automated, and dynamic manufacturing processes is having a growing impact on industries. Virtual machines commonly function behind the scenes, supporting a variety of operations. Algorithms are the essential intelligence of these virtual machines, greatly increasing efficiency and effectiveness within marketplaces. Algorithms have the ability to promote competition and increase efficiency, eventually improving market competitiveness. However, algorithmic collusion can be maintained using “dynamic pricing” techniques, which are typically associated with automated pricing. Algorithmic collusion leads to increases in prices and/or decreases in the quality of products and services. The main objective and the function of competition authorities is to fight against those formations. In this regard, cartel screening is an important first step toward detecting collusive activity. In this paper, we used several moment screens to capture the effects of algorithmic pricing. Our findings suggest that algorithmic pricing exhibits non-collusive behavior within the particular industry and time frame examined in our analysis.

Keywords

Teşekkür

This work is derived from Yalçıner Yalçın’s Ph.D thesis

Kaynakça

  1. Abrantes-Metz, R. M. (2013). Proactive vs reactive anti-cartel policy: The role of empirical screens. Available at SSRN 2284740.
  2. Abrantes-Metz, R. M., & Pereira, P. (2007). The impact of entry on prices and costs. SSRN-Working paper. [Online]. Available at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1013619.
  3. Abrantes-Metz, R. M., Froeb, L. M., Geweke, J. F., & Taylor, C. T. (2006). A variance screen for collusion. International Journal of Industrial Organization, 24, 467–486.
  4. Abrantes-Metz, R. M., Kraten, M., Metz, A., & Seow, G. (2012). LIBOR manipulation? Journal of Banking and Finance., 36(1), 136–150.
  5. Beth, H., & Gannon, O. (2022). Cartel screening–can competition authorities and corporations afford not to use big data to detect cartels?. Competition Law & Policy Debate, 7(2), 77-88.
  6. Bolotova, Y., Connor, J. M., & Miller, D. (2008). The impact of collusion on price behavior: Empirical results from two recent cases. International Journal of Industrial Organization, 26(6), 1290–1307.
  7. Byrne, D. P., & De Roos, N. (2019). Learning to coordinate: A study in retail gasoline. American Economic Review, 109(2), 591-619.
  8. Calvano, E., Calzolari, G., Denicoló, V., & Pastorello, S. (2021). Algorithmic collusion with imperfect monitoring. International journal of industrial organization, 79, 102712.

Ayrıntılar

Birincil Dil

İngilizce

Konular

Sanayi Ekonomisi

Bölüm

Araştırma Makalesi

Erken Görünüm Tarihi

20 Eylül 2024

Yayımlanma Tarihi

27 Eylül 2024

Gönderilme Tarihi

2 Mayıs 2024

Kabul Tarihi

10 Haziran 2024

Yayımlandığı Sayı

Yıl 2024 Cilt: 8 Sayı: 3

Kaynak Göster

APA
Yalçın, Y., & Öztürk, S. (2024). Detecting Algorithmic Collusion: Insights from Moment Screening Methods. Fiscaoeconomia, 8(3), 1066-1084. https://doi.org/10.25295/fsecon.1477143
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