Tuesday, November 25, 2025

“Without some notion of a threat or an agreement, it’s very hard for a regulator to come in and say, ‘These prices feel wrong.’”
– Mallesh Pai, economist at Rice University –

Your pricing algorithm might be playing nice… until it meets another algorithm and they quietly agree to stop competing, no backroom deal required. New research reveals that “well-behaved” AI systems can drift into collusion-like equilibriums through pure game theory, a reminder that bad outcomes don’t always need bad actors to pull the trigger. For more, Check out The Game Theory of How Algorithms Can Drive Up Prices.

Stay safe. Stay healthy. Be strong. Lead well.

Chad