This project aims to experiment on Reinforcement Learning algorithms running in a classic Bertrand Competition market model.
[1] Emilio Calvano, Giacomo Calzolari, Vincenzo Denicolò, and Sergio Pastorello. "Artificial Intelligence, Algorithmic Pricing and Collusion". Amer. Econ. Rev., vol. 110, no. 10, pp. 3267–3297, 2020. https://doi.org/10.1257/aer.20190623.
[2] Sanchez-Cartas, J. Manuel, und Evangelos Katsamakas."Artificial Intelligence, Algorithmic Competition and Market Structures". IEEE Access 10 (2022): 10575–84. https://doi.org/10.1109/ACCESS.2022.3144390.
Special thanks to Matteo Courthoud for the logit demand implementation and equilibrium price calculation code. Check out their replication of Calvano et al. (2020) at https://github.com/matteocourthoud/Algorithmic-Collusion-Replication