Virtual Competition : The Promise and Perils of the Algorithm-Driven Economy
Ariel Ezrachi, Maurice E. Stucke
Shoppers with a bargain-hunting impulse and internet access can find a universe of products at their fingertips. This thought-provoking expose invites us to explore how sophisticated algorithms and data-crunching are changing the nature of market competition, and not always for the better. Introducing into the policy lexicon the terms algorithmic collusion, behavioral discrimination, and super-platforms, Virtual Competition explores the resulting impact on competition, our democratic ideals, our wallets, and our well-being.
"A convincing argument that there can be a darker side to the growth of digital commerce. The replacement of the invisible hand of competition by the digitized hand of internet commerce can give rise to anticompetitive behavior that the competition authorities are ill equipped to deal with."
-Burton G. Malkiel, Wall Street Journal
"We owe the authors our deep gratitude for anticipating and explaining the consequences of living in a world in which black boxes collude and leave no trails behind. They make it clear that in a world of big data and algorithmic pricing, consumers are outgunned and antitrust laws are outdated, especially in the United States."
"A convincing case for the need to rethink competition law to cope with algorithmic capitalism's potential for malfeasance."
-John Naughton, The Observer
"A fascinating book about how platform internet companies (Amazon, Facebook, and so on) are changing the norms of economic competition."
-Ben Schiller, Fast Company