(Last Word) What Problem Is Created for Antitrust Regulators by Online

question 58

Multiple Choice

(Last Word) 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.