Mitigating Retaliatory Algorithmic Collusion in Repeated Games
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Abstract (arXiv)
Reinforcement learning agents trained to maximize their own reward in repeated interactions can converge to supra-competitive outcomes resembling explicit collusion, without communication or shared design. Existing mitigation approaches are largely tied to specific economic settings, like two-sided platforms and auctions, leaving open how to design interventions for general repeated games. We address this gap by formalizing the connection between empirical observations from prior work on Q-learning collusion and classical theory of Simple Penal Codes (SPCs). We show any non-trivial SPC induces a quantifiable conditional dependence in agents' policies, detectable via the total variation distance between an agent's action distributions across cooperation and defection histories. Building on this connection, we propose CURB (Collusion Unwinding via Reward shaping and Belief injection), a reward-shaping framework that penalizes this Total Variation (TV) distance signal during Q-learning and is guaranteed to convert any SPC fixed point of the dynamics into a trivial one, thus precluding collusive equilibria sustained by punishment threats. Empirically, CURB substantially reduces collusion by Q-learning agents in both Bertrand and Cournot Competition Repeated Games. We further demonstrate that CURB extends to deep Q-network agents in Bertrand competition, suggesting the mechanism generalizes beyond tabular Q-learning.
Key facts. Cited by 1 paper in the map (data through 7 Oct 2026). Builds on 10 of its 31 references that are in the map. First posted on arXiv 17 Sep 2026.
Builds on
10 of 31 references.
References · 10
- 2013Playing Atari with Deep Reinforcement Learningcited by 3,211
- 2017Multi-agent Reinforcement Learning in Sequential Social Dilemmascited by 206
- 2018Inequity aversion improves cooperation in intertemporal social dilemmascited by 106
- 2024Algorithmic Collusion by Large Language Modelscited by 54
- 2024Strategic Collusion of LLM Agents: Market Division in Multi-Commodity Competitionscited by 25
- 2022Artificial Intelligence and Auction Designcited by 20
- 2024Regulation of Algorithmic Collusioncited by 10
- 2022Learning to Mitigate AI Collusion on Economic Platformscited by 9
- 2025Regulation of Algorithmic Collusion, Refined: Testing Pessimistic Calibrated Regretcited by 7
- 2023Self-Play Q-learners Can Provably Collude in the Iterated Prisoner's Dilemmacited by 3
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Citing papers per year: 2026: 1.
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