2021 Fiscal Year Research-status Report
Artificial Intelligence, Price Setting Strategies and Antitrust Law: Towards a Regulatory Framework
| Project/Area Number |
18K01300
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| Research Institution | Kyushu University |
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Principal Investigator |
VAN・UYTSEL S 九州大学, 法学研究院, 教授 (30432842)
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| Project Period (FY) |
2018-04-01 – 2023-03-31
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| Keywords | hub-and-spoke collusion / opaqueness / tranparency / Japan / Antimonopoly Law / algorithmic collusion / JFTC / Uber |
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| Outline of Annual Research Achievements |
The research has focused on the information underlying pricing algorithms. This research has concluded that a distinction needs to be made between information that is either opaque or transparent. Opaque information will make it difficult to achieve tacit collusion, but also explicit collusion. The former is likely only to happen when other software is implemented, eventually based upon reverse engineering of a competitors algorithm. The latter may occur when the users of the algorithm have come to an understanding of the algorithm, and so allowing them to agree on elements that influence the outcome of the algorithm. Transparent information most likely will lead to tacit collusion, whereby the algorithm adjusts the price to the price of a determined competitor. This competitor is usually the lowest price setter. Of course, transparent information does not exclude express collusion, where there has been communication between competitors. Based on the information found, algorithms allow firms to be more efficient. This could eventually make an overall predatory pricing strategy more feasible. These competition law conclusion have been drawn from empirical studies provided by computer experts on Uber and Amazon Marketplace.
The research has further focused on the taxonomy of algorithmic collusion by arguing that the hub-and-spoke collusion includes fundamentally different scenarios. Also, it is not for sure that the predictive algorithm can operate without human intervention making information artificially transparent.
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| Current Status of Research Progress |
Current Status of Research Progress
3: Progress in research has been slightly delayed.
Reason
The research as such is progressing smoothly. All conclusion that the research aimed for have been drawn. This research is currently going through an editorial process in order to publish the research with Edward Elgar. It is this editorial that has been slightly delayed.
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| Strategy for Future Research Activity |
The research will focus on collecting the necessary information for completing the book project. This will involve the making of a bibliography, proper footnoting of the different chapters and a final reading of the whole manuscript. If everything goes as planned, the manuscript will be submitted to the publisher around July. After this, the manuscript will go into its production process.
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| Causes of Carryover |
The budget will be used to complete the completion of the editorial work on the book project related to this project. This will include, among other, a native check.
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