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AI and Algorithmic Pricing: Is the New Tech Old Hat for Antitrust Enforcement?

Ada Wang, Boris Bershteyn, Daniel J Walker, and Kirti Gupta

AI-based pricing algorithms allow firms to precisely target consumers' willingness to pay, but they also raise new competition and consumer protection questions. We explore whether they can facilitate cartels, as alleged in the RealPage case; whether they can be vulnerable to bots; and more generally how to ensure AI fosters innovation without creating entry barriers or bolstering monopolies.