Discussion paper

DP16393 Algorithmic collusion, genuine and spurious

We clarify the difference between the asynchronous pricing algorithms analyzed by Asker, Fershtman and Pakes (2021) and those considered in the previous literature. The difference lies in the way the algorithms explore: randomly or mechanically. We reaffirm that with random exploration, asynchronous pricing algorithms learn genuinely collusive strategies.


Calvano, E, G Calzolari, V Denicolo and S Pastorello (2021), ‘DP16393 Algorithmic collusion, genuine and spurious‘, CEPR Discussion Paper No. 16393. CEPR Press, Paris & London. https://cepr.org/publications/dp16393