What happens when companies on digital labor platforms no longer decide for themselves how much to pay their workers, but leave this to learning algorithms? Researchers at TU Darmstadt, Bielefeld University and the Université Côte d’Azur have demonstrated in computer simulations that, where only a few firms compete with one another, such artificial intelligence (AI) systems can “learn” to set wages at a very low level without communicating with one another or having been programmed to collude.
When the algorithm determines wages
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