An Economic Test for an Unlawful Agreement to Adopt a Third-Party's Pricing Algorithm

Professor Joe Harrington (Wharton) just updated his excellent article on 3P pricing algorithms.  As the title suggests, he proposed an economic test that is based on economic data and statistical analysis. 

The proposed test is based on the following insight:  

If adoption decisions are coordinated then adopters' average price is increasing in the number of adopting firms, while if adoption decisions are independent then adopters' average price does not depend on the number of adopting firms. 

Download the paper for free here:  https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4520245

I discussed this paper and an earlier closely related paper by Professor Harrington in my recent article.  

See my paper here: https://algorithmiccompetition.blogspot.com/2024/04/what-do-we-know-about-algorithmic.html