The increasing prevalence of artificial intelligence (AI) and algorithms in economic activity raised substantial concerns about their effects on competition among lawyers, economists, and policymakers.  Two of the major concerns are: (i) a small number of firms (OpenAI, Anthropic, Google) own the proprietary Large Language Models underpinning the generative AI revolution, raising concerns about upstream market power. (ii) sophisticated AI models are being used to price goods in markets online and offline, and these models may learn to collude on supra-competitive prices more efficiently than human price-setters.

This course will discuss both of these concerns in detail. We will use analytic models and recent data to understand. Then, we will review theoretical and empirical evidence about the possibility, and plausibility, of anti-competitive behaviour by algorithmic pricing agents. As part of our discussion, we will review important cases, such as recent US class action suits against algorithmic pricing providers.