Artificial intelligence, algorithmic pricing, and collusion
1–10 of 57 posts
Re: Artificial intelligence, algorithmic pricing, and collusion
#2Neat work, but doesn't behavior require colluding to be considered collusive? Otherwise this is just another neat equilibrium.
Re: Artificial intelligence, algorithmic pricing, and collusion
#3Imagine if the big world powers built computers with control over the nuclear arsenals as well as nuclear defense to have superhuman first strike and retaliation capabilities. Imagine if those computers realized that the biggest threat to peace is not the other side but the fact that humans, a warmonger species, control them. Imagine them colluding and trying to establish world control using their nuclear arsenals. Guess the movie title. It's a must watch!
Re: Artificial intelligence, algorithmic pricing, and collusion
#4[deleted]
Re: Artificial intelligence, algorithmic pricing, and collusion
#5I'd like to see this done, but over a larger scope where pricing agents are continually improving. I might be willing to believe that non-communicative collusion is possible if both agents are at the same "skill." In the real world, agents will be improved periodically to gain an edge over each other.
Re: Artificial intelligence, algorithmic pricing, and collusion
#6Neat work, but doesn't behavior require colluding to be considered collusive? Otherwise this is just another neat equilibrium.
Well, it's not just a legal question. The problem with colluding is that it involves effectively taking money from the non-colluding parties. And this causes those parties to not want to play anymore. If a small or medium investor know the algorithms are going to cheat them, that investor would not want to play the game and this, illegal or legal, prevents investing.
You have to keep in mind that markets are both a "game" and way that capital can be mobilized by society for productive purposes and one doesn't want to kill this latter aspect.
Re: Artificial intelligence, algorithmic pricing, and collusion
#7But people will compare prices, and alert the media/friends when they find discrepancies.
I've seen the narrative change in the last few years, Fast food was deemed low cost, but a Calorie Per Dollar comparison showed that eating fast food is significant more expensive.
If a single company doesn't play by the rules, the world will be aware of the price difference.
Re: Artificial intelligence, algorithmic pricing, and collusion
#8Imagine if the big world powers built computers with control over the nuclear arsenals as well as nuclear defense to have superhuman first strike and retaliation capabilities. Imagine if those computers realized that the biggest threat to peace is not the other side but the fact that humans, a warmonger species, control them. Imagine them colluding and trying to establish world control using their nuclear arsenals. G…
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Re: Artificial intelligence, algorithmic pricing, and collusion
#9Based on the graph, it looks to me like the agents are just doing some sort of average between the previous prices, and the "ideal" price. This is evidenced by the fact that they both update to the same value immediately post-intervention, and continue to set to about the same values on every subsequent step. The article claims "This kind of self-reactive behaviour is a distinctive sign of genuine collusion," but that seems like a reach.
Re: Artificial intelligence, algorithmic pricing, and collusion
#10This reminds me of the "Tit for Tat" results of simulations of the prisoners' dilemma[1][2], where cooperating strategies won over competing ones.
It also reminds me of Colossus: The Forbin Project[3], a science-fiction movie from 1970 in which a supercomputer in the US and one in the Soviet Union learn to communicate with one another in ways incomprehensible to their human creators and together rule the Earth.
[1] - https://en.wikipedia.org/wiki/Tit_for_tat