How language model agents reshape price competition
Repeated Bertrand competition is a stringent benchmark for algorithmic pricing: in homogeneous-goods markets, standard learning procedures typically select the stage-game Nash outcome with prices near marginal cost. We show that LLM pricing agents can escape this benchmark, depending on deployment decisions. LLMs outpe...
M. Bichler, Philip Hierhager, Kassian Köck et al.
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