The digital revolution has led to a significant growth in companies’ ability to capture, store and analyse data about their customers, competitors and the wider world. Increasingly, companies are using this information to develop algorithms that set prices for them. But how might the automation of pricing through algorithms affect competitive outcomes in markets, and result in different consumers being charged different amounts for the same good or service?
In response to the European Commission’s call for contributions to its one-day conference, Shaping competition policy in the era of digitisation, we look at why companies are using algorithmic pricing and how it can affect both competition and consumers.
Read more from the series: Data in digital markets and Market power in digital platforms