Authors
Emilio Calvano, Giacomo Calzolari, Vincenzo Denicolò, Sergio Pastorello
Publication date
2023/9/1
Journal
International Journal of Industrial Organization
Volume
90
Pages
102973
Publisher
North-Holland
Description
Reinforcement-learning pricing algorithms sometimes converge to supra-competitive prices even in markets where collusion is impossible by design or cannot be an equilibrium outcome. We analyze when such spurious collusion may arise, and when instead the algorithms learn genuinely collusive strategies, focusing on the role of the rate and mode of exploration.
Total citations
2023202414
Scholar articles
E Calvano, G Calzolari, V Denicolò, S Pastorello - International Journal of Industrial Organization, 2023