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News/Misspecified Estimate-then-Optimize Leads to Supra-Competitive Prices
arxiv
PublishedJune 3, 2026 at 4:00 AM
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Misspecified Estimate-then-Optimize Leads to Supra-Competitive Prices

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arXiv:2605.16064v2 Announce Type: replace-cross Abstract: We study whether simple algorithmic pricing systems can systematically produce collusive-like prices in multi-firm markets. We consider firms that price using a myopic estimate-then-optimize rule: each repeatedly fits a demand model to its ow

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