Ariel Ezrachi on colluding robots

Professor Ariel Ezrachi is the Slaughter and May Professor of Competition Law and a Fellow of Pembroke College, Oxford. Here he talks to Nicholas Barrett about the algorithms after our money. "The use of a single algorithm could have a de-facto horizontal impact on pricing." "We also reflect on the possibility of using algorithms to facilitate tacit collusion." "We discussed the possibility of almost perfect price discrimination, the possibility for platforms to make use of data in order to try to second guess the reservation price for customers and target them in a way that would optimise profit." "When we speak about big data and energy, the questions are whether the ability of the supplier to gather information, even through the meters, as to the behaviour of the customers and their usage could then be leveraged in order to gain an advantage over others."