The Implications of Algorithmic Pricing for Coordinated Effects Analysis and Price Discrimination Markets in Antitrust Enforcement

When congress enacted the Sherman and Clayton Acts over a century ago, the term “robot” did not exist. The framers of our antitrust laws would likely be amazed by the increasingly powerful and autonomous technologies, such as algorithms, machine learning, and artificial intelligence (AI) that have come to play a significant role in many firms’ competitive behavior. These technologies have the potential to deliver meaningful consumer benefits. For example, algorithms may enable firms to become more efficient and to provide consumers with personalized product recommendations. Big data and algorithms may also provide companies with insights that help them design better products and services.