Can algos collude? Quants are finding out

Oxford-Man Institute is among those asking: could algorithms gang up and squeeze customers?

Pricing algorithms—for anything from airline tickets to cinema seats—are a part of daily life. And daily life produces some of the most striking instances of what can happen when those algos go awry.

Take the bizarre story of a book about fruit fly genetics that wound up with a $24 million listing on Amazon in 2011. Two bookdealers that relied on Amazon’s pricing algos to maximize profit saw the algorithms become locked in a kind of inverse bidding war on Peter Lawrence’s The Making of a Fly

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The IMD Wrap: Will banks spend more on AI than on market data?

As spend on generative AI tools exceeds previous expectations, Max showcases one new tool harnessing AI to help risk and portfolio managers better understand data about their investments—while leaving them always in control of any resulting decisions.

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