Innis Lecture: Algorithmic pricing and competition

Abstract This article examines how advances in AI‐driven algorithmic pricing are reshaping the nature of cartel formation and coordination. Traditionally, cartels relied on explicit communication, extensive organization, and sustained human effort to reach and maintain agreement while avoiding detection. Recent technological developments now raise concerns that coordination may arise with far less human involvement. In particular, three main risks are identified: the deliberate use of algorithms to implement collusive strategies, the role of algorithms as third‐party facilitators of collusion, and the possibility that algorithms may autonomously learn to collude. While algorithmic pricing can enhance efficiency and competition, the article assesses these risks and considers associated legal implications.