How AI|powered Collusion in Stock Trading Could Hurt Price ...

How AI-powered Collusion in Stock Trading Could Hurt Price ...

There is no evidence yet of AI collusion hurting the financial markets, but the threat is real, warns a paper co-authored by Wharton's Winston Wei Dou and Itay ...

AI-Powered Collusion in Financial Markets

Such collusive trading compromises market efficiency by decreasing liquidity, diminishing price informativeness, and widening mispricing. These ...

AI-Powered Trading, Algorithmic Collusion, and Price Efficiency

Our results demonstrate that informed AI traders can collude and generate substantial profits by strategically manipulating low order flows, even without ...

AI-Powered Trading, Algorithmic Collusion, and Price Efficiency

Our results demonstrate that informed AI speculators, even though they are “unaware” of collusion, can autonomously learn to employ collusive.

AI-Powered Trading, Algorithmic Collusion, and Price Efficiency

Our findings show that informed AI speculators can autonomously learn to sustain collusive supra-competitive profits without any form of ...

AI-Powered Trading, Algorithmic Collusion, and Price Efficiency

As a result, in a market with prevalent AI-powered trading, both price informativeness and market liquidity can suffer, reflecting the influence of both ...

Price collusion using artificial intelligence - Charles River Associates

Antitrust lawyers have raised concerns that if AI algorithms were able to control pricing decisions, were programmed to maximize profits, and had access to ...

Defining AI Collusion Depends on Consumer Harm and Algorithms

The use of artificial intelligence has been under the microscope, from its role in misinformation campaigns to its potential to violate ...

Research paper explores impact of AI on pricing decisions

In recent years, advancements in AI and machine learning have raised questions about whether such innovations could facilitate collusive pricing ...

An economic test for protecting consumers from AI-powered collusion

... could coordinate price increases. This column summarises a new ... Harrington, J E (2022), “The Effect of Outsourcing Pricing Algorithms on Market ...

AI, Algorithmic Pricing, and Collusion - Simon Business School

We found that predictive algorithms can actually make collusion harder to sustain. Improvements in the quality of demand predictions accomplish ...

Algorithmic collusion in capital markets - AFM

buyers and sellers can trade at the then-current market price. In practice ... the use of AI in trading algorithms and detecting new forms of market disruption.

Antitrust Risks to Firms Lurk Inside Some AI Pricing Algorithms

The Federal Trade Commission cautions that “firms in generative AI markets could take advantage of network effects to maintain a dominant ...

Can AI engage in price fixing? - Financier Worldwide

Competition laws in the US, European Union and UK have long forbidden competitors from colluding or conspiring to fix prices. Before AI and the advent of ...

AI-Powered Trading, Algorithmic Collusion, and Price Efficiency - CBS

More than 50% of respondents, which are 835 institutional and professional traders, said AI technologies would have the most influence on trading the.

AI presents the risk for collusion in investing in financial markets.

The risk of AI collusion serves as an early warning signal to both investors and regulators who want to prevent price distortions — and the ...

We're Entering an AI Price-Fixing Dystopia : r/ArtificialInteligence

“Without price competition, businesses lose their incentive to innovate and lower costs, and consumers get stuck with high prices and no ...

Esus on LinkedIn: How AI-powered Collusion in Stock Trading ...

It could foresee the impact of a trade war, a natural disaster, or even a social media trend on stock prices, currencies, and commodities.

AI Price Wars: Algorithmic collusion or competition 'at speed'?

Adversarial competition: If one company uses a pricing algorithm to set it prices just under its competitor, the competitor will quickly notice ...

Misinformation and the Stock Market: Will AI Raise the Risk to ...

AI has the capability to amplify the spreading of false narratives, including misleading statements about investment data that could conceivably affect the ...