Platform Design When Sellers Use Pricing Algorithms

IF 6.6 1区经济学 Q1 ECONOMICS

Econometrica Pub Date : 2023-10-03 DOI:10.3982/ECTA19978

Justin P. Johnson, Andrew Rhodes, Matthijs Wildenbeest

引用次数: 0

Abstract

We investigate the ability of a platform to design its marketplace to promote competition, improve consumer surplus, and increase its own payoff. We consider demand-steering rules that reward firms that cut prices with additional exposure to consumers. We examine the impact of these rules both in theory and by using simulations with artificial intelligence pricing algorithms (specifically Q-learning algorithms, which are commonly used in computer science). Our theoretical results indicate that these policies (which require little information to implement) can have strongly beneficial effects, even when sellers are infinitely patient and seek to collude. Similarly, our simulations suggest that platform design can benefit consumers and the platform, but that achieving these gains may require policies that condition on past behavior and treat sellers in a nonneutral fashion. These more sophisticated policies disrupt the ability of algorithms to rotate demand and split industry profits, leading to low prices.

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卖家使用定价算法时的平台设计

我们研究了一个平台设计市场以促进竞争、提高消费者剩余和增加自身回报的能力。我们考虑了需求导向规则，该规则奖励降价的公司向消费者提供额外的敞口。我们在理论上和通过人工智能定价算法（特别是计算机科学中常用的Q学习算法）的模拟来检验这些规则的影响。我们的理论结果表明，即使卖家无限耐心并寻求串通，这些政策（实施起来几乎不需要信息）也会产生强烈的有益效果。同样，我们的模拟表明，平台设计可以让消费者和平台受益，但实现这些收益可能需要以过去的行为为条件的政策，并以非中立的方式对待卖家。这些更复杂的政策破坏了算法轮换需求和分割行业利润的能力，导致价格低廉。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Econometrica 社会科学-数学跨学科应用

CiteScore

11.00

自引率

3.30%

发文量

审稿时长

6-12 weeks

期刊介绍： Econometrica publishes original articles in all branches of economics - theoretical and empirical, abstract and applied, providing wide-ranging coverage across the subject area. It promotes studies that aim at the unification of the theoretical-quantitative and the empirical-quantitative approach to economic problems and that are penetrated by constructive and rigorous thinking. It explores a unique range of topics each year - from the frontier of theoretical developments in many new and important areas, to research on current and applied economic problems, to methodologically innovative, theoretical and applied studies in econometrics. Econometrica maintains a long tradition that submitted articles are refereed carefully and that detailed and thoughtful referee reports are provided to the author as an aid to scientific research, thus ensuring the high calibre of papers found in Econometrica. An international board of editors, together with the referees it has selected, has succeeded in substantially reducing editorial turnaround time, thereby encouraging submissions of the highest quality. We strongly encourage recent Ph. D. graduates to submit their work to Econometrica. Our policy is to take into account the fact that recent graduates are less experienced in the process of writing and submitting papers.