Farrell and Shapiro (2008) have proposed a test – called the Upward Pricing Pressure (UPP) test – to evaluate potential unilateral effects of horizontal mergers. This comment shows that the UPP test – suitably reinterpreted and properly implemented – can be applied usefully also in industries where suppliers set prices through bidding competition.
What happens when AI sets wages
The authors fed 60,000 freelancer profiles into eight widely used LLMs, asking each model to recommend an hourly rate. From hourly wage setting to testing for...