(Last Word) What problem is created for antitrust regulators by online pricing algorithms?
A) Even if the algorithms produce collusive prices, the lack of an agreement makes it difficult to prosecute under current antitrust law.
B) The encrypted data does not allow regulators to determine whether prices are converging to a level consistent with collusion.
C) Online pricing algorithms are programmed to randomly vary prices to prevent antitrust regulators from discovering price-fixing.
D) Online pricing algorithms are programmed to ensure that there is just enough of a gap between prices across firms that collusion would be impossible to prove.

Question

Quizplus · Accepted Answer

Online pricing algorithms may produce collusive prices, but since there is no explicit agreement between firms, it becomes difficult for antitrust regulators to prosecute them under current antitrust laws. This makes it a major problem for antitrust regulators as they cannot rely on traditional antitrust laws to prosecute cases involving online pricing algorithms.

(Last Word) What Problem Is Created for Antitrust Regulators by Online