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by evrydayhustling 2682 days ago
Most coordinated equilibria results depend on facing the same competitors repeatedly - partly to learn an equilibrium that is influenced by each player's private preferences, and partly because repeated play introduces consequences for defecting from that equilibrium. The more you expect to see the same opponents again, the more you have to gain for colluding, and the more you have to lose from defecting.

So, the most interesting aspect of AI pricing might not be the AI - humans could probably learn to collude with the same setup. It's the fact that AI enables orders of magnitude more pricing decisions, so bots spend less time discovering or defecting from equilibrium, and more time sharing maximum collective profit from customers.