Virtual Competition

Virtual Competition

Number of page: 356
Author: Ariel Ezrachi, Maurice E. Stucke
Publisher: Harvard University Press
ISBN: 9780674545472
Rating:
Category: Business & Economics

Shoppers with Internet access and a bargain-hunting impulse can find a universe of products at their fingertips. In this thought-provoking expos , Ariel Ezrachi and Maurice Stucke invite us to take a harder look at today’s app-assisted paradise of digital shopping. While consumers reap many benefits from online purchasing, the sophisticated algorithms and data-crunching that make browsing so convenient are also changing the nature of market competition, and not always for the better. Computers colluding is one danger. Although long-standing laws prevent companies from fixing prices, data-driven algorithms can now quickly monitor competitors’ prices and adjust their own prices accordingly. So what is seemingly beneficial–increased price transparency–ironically can end up harming consumers. A second danger is behavioral discrimination. Here, companies track and profile consumers to get them to buy goods at the highest price they are willing to pay. The rise of super-platforms and their

About The Author

Ariel Ezrachi is Slaughter and May Professor of Competition Law at the University of Oxford.

Maurice E. Stucke is Professor of Law at the University of Tennessee and co-founder of The Konkurrenz Group.