Understanding AI Collusion and Compliance
Changes in technology and the rise of artificial intelligence (AI) and machine-learning create new possibilities both for anti-competitive behavior and to aid in detection of such algorithmic collusion. To some extent, AI collusion takes traditional ideas of collusion and simply provides a technological overlay to them. However, in some instances, the mechanisms of both collusion and detection can be transformed using AI. This handbook chapter discusses existing theoretical and empirical work and identifies research gaps as well as avenues for new scholarship on how firms or competition authorities might invest in AI compliance to improve detection of wrongdoing.