Algorithmic pricing under scrutiny from regulators, candidates

Digital Price-Fixing Scrutiny Grows From Regulators, Candidates

The use of computer code to set prices on items like rent and groceries is adding a complex new layer to antitrust concerns.

It’s unclear how prolific the use of algorithms or artificial intelligence is in setting prices today, but the practice is drawing scrutiny from the Federal Trade Commission and the Justice Department. Data show algorithms can impact pricing in “so many ways,” including in the form of price hikes, said Ai Deng, an economist at Charles Rivers Associates who studies AI and its effects on prices. Deng notes there isn’t strong ...