Reposted by Hans-Theo Normann
📣 New paper! "Delegate Pricing Decisions to an Algorithm? Experimental Evidence" with @normann.bsky.social, Nina Rulié, & @ostypa.bsky.social
We study what happens when humans delegate to a collusive algorithm, and AI pricing adoption becomes a strategic choice!
arXiv: arxiv.org/abs/2510.27636
arxiv.org
Delegate Pricing Decisions to an Algorithm? Experimental Evidence
We analyze the delegation of pricing by participants, representing firms, to a collusive, self-learning algorithm in a repeated Bertrand experiment. In the baseline treatment, participants set prices ...
