Algorithmic Collusion in Cournot Duopoly Market: Evidence from Experimental Economics

Abstract

Algorithmic collusion is an emerging concept. Whether algorithmic collusion is a creditable threat remains as an argument. In this paper, we propose an algorithm which can extort its human rival to collude in a Cournot duopoly competing market. In experiments, we show that, the algorithm can successfully extort its human rival and gets higher profit in long… (More)

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