Algorithmic agencing in platform markets

Abstract

Algorithms are central in shaping platform markets, impacting not only calculation processes but also influencing market actors’ relationships and market structures more broadly. As “autonomous” market devices that are executable or operate without the need for human intervention, algorithms continuously organize, prioritize, and rank product profiles, resulting in personalized exchange offers based on data processing. However, different market actors also actively attempt to influence these processes, turning platform markets into what could be described as algorithmic battlefields. Despite the growing significance of market-based algorithms, research on their role in market shaping remains scarce. This paper explores the role of algorithms in shaping platform markets. By drawing together literatures from market studies and critical algorithm studies, four key algorithmic characteristics in “agencing” markets are identified: as market actors, targets of market contestations, boundary objects, and market systems connectors. Based on these roles, the paper formulates a research agenda for studying algorithmic agencing in platform markets.