The Perils of Algorithmic Pricing
Several recent court cases contend that the pricing algorithms used by hotels and multifamily landlords pose antitrust risks. Federal regulators have intervened to argue that these systems can lead to unintended collusion and antitrust violations, even without explicit agreements among the parties. Businesses can reduce the risk of collusion with algorithms that rely on decentralized — as opposed to centralized — decision-making and use only public, not private, data.
