Objective
AI algorithms are increasingly being used in markets. It is generally agreed that they create a wealth of value by facilitating economic interactions. However, there are also concerns that when applied to market environments, they could lessen competition and harm consumers. This proposal sets forth an important first step of an articulated research program on AI and Competition. The proposal is structured as three organic projects focusing on two important classes of AI algorithms. The first class, price-setting algorithms, are tools that are used by online merchants to set retail prices. As the algorithms of each merchant interact in a common market, they can mutually learn to defeat competition. We plan to study how these collusive conducts are learned to propose a direction for potential regulation. The second class, recommender systems (RS), are ubiquitous online algorithms that suggest products and content to consumers that are based on their current and past behaviour. For example, Amazon.com uses recommender systems to rank products on search result pages, or to suggest other products that the user may be interested in. The aim of the proposed research project is to assess whether RSs are pro-competitive or anti-competitive by studying how firms endogenously react to RSs in terms of price, product design and entry/exit decisions. Methodologically, these projects rigorously combine ingredients from economics and computer science (CS), departing from the stylized modelling approach of the literature and instead are aimed at analysing state-of- the-art algorithms developed in the CS literature.
Algorithms and their impact on market outcomes naturally require an interdisciplinary approach. Dealing with actual algorithms calls for new tools, to supplement the economist’s traditional analytical toolbox. For this reason, an essential part of this research proposal is the creation of a joint research agenda via a “research pod” with an associated scientific program.
Keywords
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
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HORIZON.1.1 - European Research Council (ERC)
MAIN PROGRAMME
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Topic(s)
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
HORIZON-ERC - HORIZON ERC Grants
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Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
(opens in new window) ERC-2022-ADG
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Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.
00198 Roma
Italy
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