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AI agents in Algorithmic Electricity Markets: On the Emergence of Tacit Collusion

arXiv · AI, language, vision and robotics · article · Aug 27, 2026 · UTC

As electricity market participants increasingly adopt learning-based agents for their bidding strategies, electricity markets are becoming algorithmic. Evidence from algorithmic markets in other domains shows that tacit collusion can arise purely through independent learning. Moreover, electricity markets are typically oligopolistic and feature repeated interaction among a small number of participants, making them structurally susceptible to non-competitive behavior. In the face of these observations, this paper investigates the hypothesis that tacit collusion may emerge in electricity markets

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Evidence & attribution

First collected: 2026-09-21T08:51:59.673Z. This is not the publication date.