Story perspectives

Study Reveals Challenges in Regulating Algorithmic Pricing

11/24/2025

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Summary

Story summary

A study led by Natalie Collina, a researcher, uses game theory to examine algorithmic pricing.
Economist Mallesh Pai emphasizes that regulators face difficulty identifying unfair pricing without clear threats or agreements.
The research finds that high prices can emerge unexpectedly, underscoring the need to regulate pricing algorithms.
Joseph Harrington, an economist not involved in the study, notes the importance of creating and dismantling collusion in controlled settings.

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Story summary

A study led by Natalie Collina, a researcher, uses game theory to examine algorithmic pricing.
Economist Mallesh Pai emphasizes that regulators face difficulty identifying unfair pricing without clear threats or agreements.
The research finds that high prices can emerge unexpectedly, underscoring the need to regulate pricing algorithms.
Joseph Harrington, an economist not involved in the study, notes the importance of creating and dismantling collusion in controlled settings.