What Problem Is Created for Antitrust Regulators by Online Pricing

question 163

Multiple Choice

What problem is created for antitrust regulators by online pricing algorithms?

• A)Even if the algorithms produce collusive prices, the lack of an agreement makes it difficult to prosecute under current antitrust law.
• B)The encrypted data does not allow regulators to determine whether prices are converging to a level consistent with collusion.
• C)Online pricing algorithms are programmed to randomly vary prices to prevent antitrust regulators from discovering price-fixing.
• D)Online pricing algorithms are programmed to ensure that there is just enough of a gap between prices across firms that collusion would be impossible to prove.