AI price competition with capacity constraints

We study the effect of adding capacity constraints to AI pricing algorithms. A common worry following Calvano et al (2020) is that autonomous pricing algorithms set collusive prices. We investigate how whether the equilibrium price paths converge similarly when there are capacity constraints on per-period sales.

John Sæten Lilletvedt
PhD Research Scholar
Ole Kristian Dyskeland
Ole Kristian Dyskeland
PhD Research Scholar

PhD Research Scholar in ‘Business Economics’ at NHH Norwegian School of Economics. Research in applied economic theory for industrial organisation and media economics.