Algorithmic Pricing, Price Wars, and Tacit Collusion: Evidence from E-Commerce
Repricing tools cut prices about 17%, but 'resetting' strategies coax competitors to raise prices when fewer than six serious competitors exist.
Summary
An event study on e-commerce data examines algorithmic pricing in the wild.
Editor's opinion
Directly touches a live strategic/antitrust question (algorithmic pricing and tacit collusion), even though the underlying design is a narrow event study.
Key concepts
algorithmic pricing · tacit collusion · price wars · e-commerce