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30 Harv. J. L. & Tech. 309 (2016-2017)
Algorithmic Consumers

handle is hein.journals/hjlt30 and id is 321 raw text is: Harvard Journal ofLaw & Technology Volume 30, Number 2 Spring 2017 ALGORITHMIC CONSUMERS Michal S. Gal & Niva Elkin-Koren* TABLE OF CONTENTS I. INTRODUCTION .................................. ......309 II. TECHNOLOGICAL BACKGROUND ..................... .......313 A. What Are Algorithmic Consumers?........... ............. 313 B. The Benefits and Risks ofAlgorithmic Consumers ..................318 1. Virtues of Algorithmic Consumers .......... .....318 2. New Harms and Risks. ................. ....... 322 III. EFFECT ON MARKET DYNAMICS AND ON WELFARE...................325 A. Effects on Consumers ........................ .....326 B. Effects on Suppliers. ......................... ......328 C. Effects ofAlgorithmic Interactions ............. .......330 D. Increased Buyer Market Power ............................... 331 E. Barriers to Competition in Digital Markets ....... ........334 IV. IMPLICATIONS FOR REGULATION .............. ...........339 A. Reducing Barriers to Consumer Access... ...................340 B. Reducing Barriers to Relevant Data Access ....... ....... 342 C. Exclusionary Conduct by Algorithms .....................344 V. CONCLUSION. .................................... ..... 352 I. INTRODUCTION Your automated car makes independent decisions on where to purchase fuel, when to drive itself to a service station, from which garage to order a spare part, and whether to rent itself out to other pas- * Professors, University of Haifa Faculty of Law. Michal S. Gal is the Director of the Fo- rum for Law and Markets and the President of the International Association of Competition Law Scholars (ASCOLA). Niva Elkin-Koren is Director of the Center for Law and Tech- nology, Faculty Associate at the Berkman Klein Center for Internet & Society at Harvard University. We would like to thank participants at the Columbia and NYU colloquiums, the Berkman Klein Center for Internet & Society at Harvard University colloquium, and the Haifa/Loyola Symposium, as well as Oren Bar-Gill, Anu Bradford, Ariel Ezrachi, Zohar Goshen, Asaf Hamdani, Andreas Heinemann, Nicholas Petit, Maurice Stucke, and the edi- tors of this journal for most helpful comments on previous drafts, and Omer Balas, Lior Frank, Gal Marom, and Matan Goldblatt for most helpful research assistance. This research was supported by the I-CORE Program of the Planning and Budgeting Committee and the Israel Science Foundation (1716/12), and by the Minerva Center for the Rule of Law under Extreme Conditions at the Faculty of Law and Department of Geography and Environmental Studies, University of Haifa, and of the Israeli Ministry of Science, Technology and Space. Any mistakes or omissions are those of the authors.

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