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100 Minn. L. Rev. 1323 (2015-2016)
Antitrust and the Robo-Seller: Competition in the Time of Algorithms

handle is hein.journals/mnlr100 and id is 1363 raw text is: Article Antitrust and the Robo-Seller: Competition in the Time of Algorithms Salil K. Mehrat INTRODUCTION Disruptive innovation can turn users into newly-minted economists. Consider the controversial practice of surge pric- ing enabled by the ride-sharing service Uber.' Confronted on occasions such as New Year's Eve by prices six to seven times as much as normal, users tend to ask for an explanation. On the one hand, surge pricing resembles basic market econom- ics-many people want a ride, market demand pushes the price up, and those higher prices attract more drivers until the price falls to a new level.2 But as Uber's own marketing recognizes, this is a market whose price signals act within a proprietary t Professor of Law, Temple University, James E. Beasley School of Law. smehra@temple.edu. The author wishes to thank Greg Mandel, Jeff Vagle, Polk Wagner, Harwell Wells, and Chris Yoo for their comments, as well as participants at workshops and conferences at the University of St. Gallen, Bournemouth University and the University of Pennsylvania. Thanks also to Dylan Taylor for research assistance and Sarah Mehra for editing help. Copy- right @ 2016 by Salil K. Mehra. 1. See Eric Posner, Why Uber Will-and Should-Be Regulated, SLATE (Jan. 5, 2015, 2:49 PM), http://www.slate.com/articles/newsand-politics/view from_chicago/2015/01/uber-surge-pricing-federal regulation over taxisand carrideservices.single.html (endorsing arguments for regulation of surge pricing, Uber's term for raising prices at times of higher demand); Ilya Somin, Surge Pricing and Political Ignorance, WASH. POST: VOLOKH CONSPIRACY (Dec. 31, 2014), https://www.washingtonpost.com/news/volokh-conspiracy/wp/ 2014/12/31/surge-pricing-and-political-ignorance (opposing regulation, but fearing that without at least a basic understanding of economics, consumers won't realize that surge pricing increases the quantity and quality of available goods); see also Yves Faguy, The Uber Cartel, CBA NATIONAL (Jan. 5, 2015), http://www.nationalmagazine.ca/Blog/January-2015/The-Uber-cartel.aspx (discussing surge pricing and noting the possible relevance of Canadian com- petition law). 2. See Jacob Saulwick, Is Cab App Just an Uber Cartel?, SYDNEY MORN- ING HERALD (Jan. 10, 2015), http://www.smh.com.aulbusiness/is-cab-app -just-an-uber-cartel-20150108-12ktd5. 1323

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