As online platforms and artificial intelligence (AI) increasingly influence market pricing and consumer choices, economists and competition authorities gathered to explore competition policy suited for the digital era.
The Fair Trade Commission and the Korean Econometric Society held a joint academic conference on the theme of 'Competition Policy in the Digital Age' on August 28 at KAIST's Seoul campus in Dongdaemun.
The conference focused on how the expansion of platform economies and advancements in AI and other technologies are rapidly changing traditional market competition. Key issues discussed included corporate pricing strategies, cost pass-through, consumer choices in online environments, and algorithm-driven pricing, which have become central to recent competition policy debates.
The digital transformation presents new challenges not only for businesses but also for competition authorities analyzing market dynamics and assessing monopolistic practices. As platform operators connect multiple markets and utilize data and algorithms in decision-making, traditional frameworks for analyzing competition may struggle to adequately explain these market changes.
Inyoung Hwan, president of the Korean Econometric Society, emphasized that the digital transition and the rise of platform economies are altering market operations, inter-firm competition, and consumer choices. He stressed the need for academia and policymakers to collaboratively explore future directions for competition policy based on the latest economic research.
Shin Eun-cheol, a professor at KAIST who moderated the event, highlighted the significance of addressing research closely related to competition policy, including market structure, cost pass-through, consumer choices in digital environments, and algorithmic collusion. He noted that integrating the latest economic research with real-world policy experiences could provide a more comprehensive understanding of competition issues in digital markets.
Competition authorities are also paying close attention to the impacts of platforms and AI on existing market orders. Kim Sang-hyun, an economic analysis officer at the Fair Trade Commission, diagnosed that new technologies like online platforms and AI are causing widespread changes, affecting everything from consumer choices to trading practices and market structures. He predicted that accumulating research on the effects of new technologies on consumer choices and competition could offer policy insights not only domestically but also for foreign competition authorities.
During the conference, three presentations related to competition policy in the digital age were delivered. Professor Ko Sung-wook from Yonsei University presented on 'The Impact of Demand Function Forms on Cost Pass-Through in Differentiated Oligopoly Markets.' Professor Yoon Jun-sang from the Chinese University of Hong Kong discussed 'The Influence of Visual Elements on Consumer Choices in the Consumer Lending Market,' while Professor Kim Jeong-yeol from the KDI School of Public Policy and Management presented on 'AI Pricing Behavior in Regulatory Environments.'
Following the presentations, a discussion featuring Professor Lee Jin-hyuk from Korea University, Professor Shin Wi-rae from Chonnam National University, and Kim Sang-hyun from the Fair Trade Commission took place.
A Fair Trade Commission official stated, 'This academic conference will serve as a platform to review various expert opinions on the direction of competition policy in the digital age. We plan to actively communicate with academia and stakeholders to design effective policies moving forward.'
* This article has been translated by AI.
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