Economics
Algorithmic Collusion in Digital Pricing Environments
Quick fact
In a 2017 study by the Federal Trade Commission, researchers found that simple Q-learning algorithms could learn to set prices collusively in repeated games, even without any communication—demonstrating that coordination can emerge entirely from algorithm optimization.
Why this is interesting
Imagine you and your rival both set prices using an AI. Without any human collusion—no secret meetings, no phone calls—these AIs might 'learn' to keep prices high, leaving you both profiting while consumers overpay. How could that happen?