MET Seminar - Ran Shorrer
| Dates: | 5 March 2025 |
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| Times: | 17:00 - 18:00 |
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| What is it: | Seminar |
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| Organiser: | School of Social Sciences |
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| Who is it for: | University staff, Current University students |
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Title: Algorithmic Collusion by Large Language Models
Authors: Sara Fish, Yannai A. Gonczarowski, Ran I. Shorrer
Abstract: The rise of algorithmic pricing raises concerns of algorithmic collusion. We conduct experiments with algorithmic pricing agents based on Large Language Models (LLMs). We find that (1) LLM-based agents are adept at pricing tasks, (2) LLM-based pricing agents autonomously collude in oligopoly settings to the detriment of consumers, and (3) variation in seemingly innocuous phrases in LLM instructions ("prompts") may increase collusion. Novel off-path analysis techniques uncover price-war concerns as contributing to these phenomena. Our results extend to auction settings. Our findings uncover unique challenges to any future regulation of LLM-based pricing agents, and black-box pricing agents more broadly.
Speaker website: https://rshorrer.weebly.com/
Contact: david.delacretaz@manchester.ac.uk
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Boardroom 2.016
Arthur Lewis Building
Manchester
