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Should We Be Concerned That Data And Algorithms Will Soften Competition?

BY | May 15, 2017

By Paul A. Johnson Firms are using algorithms to analyze customer and competitor data in innovative ways. Will this practice soften competition by allowing firms to tacitly collude? Will it…

By Paul A. Johnson

Firms are using algorithms to analyze customer and competitor data in innovative ways. Will this practice soften competition by allowing firms to tacitly collude? Will it allow firms to market to customers in ways that soften competition? This article argues against answering these questions categorically because, depending on the facts of each case, these practices can either soften or sharpen competition. And while the use of algorithms to analyze data is not new, the increa

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