For instance, by taking into account shifts in demand and supply more readily, such algorithms may accelerate the responsiveness of prices to shocks.11 The expansion in online sales also facilitates price comparisons and alters market structures.
Of course, the impact is much broader than just actual online sales, since online prices also affect brick-and-mortar prices.12 At the same, digitalisation may foster the rise of “superstar” firms that acquire a dominant market position on the back of the constellation of high fixed costs and low variable costs associated with many digital ventures.