ecj
By Fair Means or Foul: Quantifying Collusion in a Market Simulation with Deep Reinforcement Learning
Schlechtinger, Michael, Kosack, Damaris, Krause, Franz, Paulheim, Heiko
In the rapidly evolving landscape of eCommerce, Artificial Intelligence (AI) based pricing algorithms, particularly those utilizing Reinforcement Learning (RL), are becoming increasingly prevalent. This rise has led to an inextricable pricing situation with the potential for market collusion. Our research employs an experimental oligopoly model of repeated price competition, systematically varying the environment to cover scenarios from basic economic theory to subjective consumer demand preferences. We also introduce a novel demand framework that enables the implementation of various demand models, allowing for a weighted blending of different models. In contrast to existing research in this domain, we aim to investigate the strategies and emerging pricing patterns developed by the agents, which may lead to a collusive outcome. Furthermore, we investigate a scenario where agents cannot observe their competitors' prices. Finally, we provide a comprehensive legal analysis across all scenarios. Our findings indicate that RL-based AI agents converge to a collusive state characterized by the charging of supracompetitive prices, without necessarily requiring inter-agent communication. Implementing alternative RL algorithms, altering the number of agents or simulation settings, and restricting the scope of the agents' observation space does not significantly impact the collusive market outcome behavior.
Befriending the European Court of Justice
AMSTERDAMโ On March 25, the European Union celebrated the 60th anniversary of the Treaty of Rome, which gave birth to the European Economic Community and set the stage for the EU's creation. Like any birthday, it was an opportunity not just to celebrate, but also to consider what has been achieved โ and what must change. At a time when member countries are increasingly pulling away from the EU โ and the United Kingdom is actually leaving โ the need for reform is clear. Discussions about how to bring the European Council, Commission, and Parliament closer to EU citizens, thereby closing Europe's "democratic deficit," are frequent and animated. But another institution that could benefit from more input from EU citizens is often left out of these discussions: the European Court of Justice.
Rubik's Cube shape not a trademark, rules top EU court
The shape of multicoloured three-dimensional puzzle Rubik's Cube is not a trademark, the European Court of Justice has ruled. It means the shape of the cube alone is not enough to protect it from being copied. UK company Seven Towns, which manages Rubik's Cube's intellectual property rights, registered its shape as a trademark in in the 1990s. But German firm Simba Toys challenged the trademark protection in 2006. The European Court of Justice (ECJ) agreed that the cube's ability to rotate should be protected by a patent and not a trademark.