Algorithms employed for companies’ market activities have an ever growing impact on business and competition.
Pricing algorithms, for instance, enable companies to set prices quickly, efficiently and in a resource-efficient manner. With the help of such applications, a large number of factors can be included into a comprehensive pricing strategy. Increasingly, the technical possibilities allow algorithms to be used not only in the context of a simple adjustment to competitors’ prices but also in tailoring prices to individual market participants.
But what are the effects of the use of such pricing tools on the market, competition and society?
Tentative answers to this question can already be found in recent economic and IT research. The topic also seems to be coming to the attention of the authorities – as evidenced by several, recent high-profile cases (e.g. Facebook/BKartA). Nonetheless, it is vital that the discourse between academia and practice, between market participants and authorities continues, staying abreast of the technical and business developments.
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