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About NERA
Since 1961, NERA has provided unparalleled guidance on the most important market, legal, and regulatory questions of the day. Our work has shaped industries and policy around the world. Our field-leading experts and deep experience allows us to provide rigorous analysis, reliable expert testimony, and data-powered policy recommendations for the world’s leading law firms and corporations as well as regulators and governments. Our experience, integrity, and economic ingenuity mean you can depend on us in the face of your biggest economic and financial challenges.
NERA is proud to announce that Senior Consultants Emilie Feyler and Veronica Postal won the Concurrences Antitrust Writing Award in the Digital category. Their paper “Can Self-Preferencing Algorithms Be Pro-Competitive?” was published in The CPI Antitrust Chronicle in June 2023.
In the article, Ms. Feyler and Dr. Postal explore the dynamics of algorithmic self-preferencing and its implications in digital marketplaces. The authors discuss:
- The impact of self-preferencing algorithms in digital markets, where platforms both host and compete with other sellers, potentially skewing market competition by favoring their own products and services; and
- The ongoing debate over the fairness and competitive implications of these practices, questioning whether they limit consumer choice and market innovation by disadvantaging competitors.
The authors conclude that there is no consensus in the economic literature on whether pro-competitive benefits or possible anticompetitive considerations prevail. Nor is there consensus on the welfare effects of policy intervention aimed at correcting biases in algorithmic recommendations. Determining the net impact of self-preferencing algorithms requires individualized analysis that accounts for the workings of specific algorithms, the competitive context, and the market environment.