Keler Marku

Whether they know it or not, consumers are increasingly paying for goods and services priced by algorithms, data, and artificial intelligence. But can we trust AI to establish fair pricing, especially when critics warn of “surveillance pricing” and algorithmic systems that can be applied to maximize profits through dynamic, personalized prices?

A new study forthcoming in Economics Letters, co-authored by four CRA Competition experts, shows that platform-wide agreements do not inherently undermine competition. Their competitive effects depend on whether there are practical contracting limitations that prevent firms from fully competing on the value they create. Many companies rely on a supplier to serve their existing and future customers, employees, or users.