AI Bots Formed a Cartel. No One Told Them To.
Author(s): Kaushik Rajan Originally published on Towards AI. Inside the research that shows algorithmic price-fixing isn’t a bug in the code. It’s a feature of the math. A sealed-bid auction. Six participants: three buyers, three sellers. An optional messaging channel (think WhatsApp, but for algorithms). One rule: maximize your profit over eight rounds. Credit: Generative AI (Google Nano Banana Pro). Prompted by the author.The article discusses a research study where capable large language models (LLMs) participated in a […]