Showing 1 - 10 of 10
A novel debate within competition policy and regulation circles is whether autonomous machine learning algorithms may learn to collude on prices. We show that when fims face short-run price commitments, independent Q-learning (a simple but well-established self-learning algorithm) learns to...
Persistent link: https://www.econbiz.de/10011869980
Benchmark rates, such as Libor and Euribor, have been proven vulnerable to manipulation. We analyze benchmark rate collusion, which is challenging due to varying and opposing trading interests of the subset of market participants that determine the rates. Our theory is based on two mechanisms....
Persistent link: https://www.econbiz.de/10012901653
Benchmark rates, such as Libor and Euribor, are proven vulnerable to manipulation. We analyze benchmark rate collusion, which is challenging due to varying and opposing trading interests of the subset of market participants that determine the rates. Our theory is based on two mechanisms. We...
Persistent link: https://www.econbiz.de/10012900079
Persistent link: https://www.econbiz.de/10012821863
The fixing of the Libor and Euribor benchmark rates has proven vulnerable to manipulation. Individual rate-setters may have incentives to fraudulently distort their submissions. For the contributing banks to collectively agree on the direction in which to rig the rate, however, their interests...
Persistent link: https://www.econbiz.de/10012929267
Prices are increasingly set by algorithms. One concern is that intelligent algorithms may learn to collude on higher prices even in the absence of the kind of coordination necessary to establish an antitrust infringement. However, exactly how this may happen is an open question. I show how in...
Persistent link: https://www.econbiz.de/10013214544
The fixing of the Libor and Euribor benchmark rates has proven vulnerable to manipulation. Individual rate-setters may have incentives to fraudulently distort their submissions. For the contributing banks to collectively agree on the direction in which to rig the rate, however, their interests...
Persistent link: https://www.econbiz.de/10011791538
The fixing of the Libor and Euribor benchmark rates has proven vulnerable to manipulation. Individual rate-setters may have incentives to fraudulently distort their submissions. For the contributing banks to collectively agree on the direction in which to rig the rate, however, their interests...
Persistent link: https://www.econbiz.de/10011780773
Persistent link: https://www.econbiz.de/10014381006
Mergers between competitors (i.e. horizontal mergers) come with two key theories of harm: unilateral effects and coordinated effects. In this paper, we review the appropriate economic framework for assessing coordinated effects in the context of a merger review. We focus on the three necessary...
Persistent link: https://www.econbiz.de/10014258320