%0 Generic %1 Zach2020 %A Brown, Zach Y. %A Mackay, Alexander %D 2020 %J ERN: Imperfect Competition (Topic) %K dynamicpricing machinelearning pricingalgorithms competition posted_with_chatgpt %R 10.2139/ssrn.3485024 %T Competition in Pricing Algorithms %U https://www.semanticscholar.org/paper/418da8ade97e26e6531cc4370736e001abe935d4 %X We document new facts about pricing technology using high-frequency data, and we examine the implications for competition. Some online retailers employ technology that allows for more frequent price changes and automated responses to price changes by rivals. Motivated by these facts, we consider a model in which firms can differ in pricing frequency and choose pricing algorithms that are a function of rivals’ prices. In competitive (Markov perfect) equilibrium, the introduction of simple pricing algorithms can increase price levels, generate price dispersion, and exacerbate the price effects of mergers. (JEL D21, D22, D43, G34, L13, L81)

@JournalArticle{Zach2020, abstract = {We document new facts about pricing technology using high-frequency data, and we examine the implications for competition. Some online retailers employ technology that allows for more frequent price changes and automated responses to price changes by rivals. Motivated by these facts, we consider a model in which firms can differ in pricing frequency and choose pricing algorithms that are a function of rivals’ prices. In competitive (Markov perfect) equilibrium, the introduction of simple pricing algorithms can increase price levels, generate price dispersion, and exacerbate the price effects of mergers. (JEL D21, D22, D43, G34, L13, L81)}, added-at = {2024-04-07T12:31:45.000+0200}, author = {Brown, Zach Y. and Mackay, Alexander}, biburl = {https://www.bibsonomy.org/bibtex/2fefd70c8c1440df1dd9e2433b7e2454b/jakubpatela}, day = 14, description = {Artykuł omawia wpływ technologii i algorytmów cenowych na konkurencję i strategie cenowe, podkreślając różnice między firmami w zakresie częstotliwości ustalania cen i wyboru algorytmów cenowych w odpowiedzi na ceny konkurentów.}, doi = {10.2139/ssrn.3485024}, interhash = {85b249f519bf3c32915f19f77a673cd3}, intrahash = {fefd70c8c1440df1dd9e2433b7e2454b}, journal = {ERN: Imperfect Competition (Topic)}, keywords = {dynamicpricing machinelearning pricingalgorithms competition posted_with_chatgpt}, month = {9}, timestamp = {2024-04-07T12:31:45.000+0200}, title = {Competition in Pricing Algorithms}, url = {https://www.semanticscholar.org/paper/418da8ade97e26e6531cc4370736e001abe935d4}, year = 2020 }