Amazon reportedly used a secret algorithm to jack up prices — A new report details Amazon’s Project Nessie pricing algorithm::Amazon deployed a secret algorithm to gauge how high it could raise prices before its competitors stopped increasing their prices as well.
I am shocked that business changed prices to meet demand. SHOCKED!
The article doesnt talk about changing prices based on demand, it is about changing prices based on competitors’ prices.
And yea, if Target increased their prices when Amazon increased, then they would just all be higher. Then they could do it another round and another round until one of the companies decided they were at the limit.
If the two companies talked to each other about this, it would be illegal collusion. But instead they have code automate it without an explicit conversation, which may not be illegal but certainly makes our lives worse.
This isn’t an interconnected two way API/algorithm. There is no collusion here. That requires a two way communication and agreement. Amazon is taking public data and automating what every company out there already does.
At best Amazon will get pegged if they are using internal pricing data, but they likely are using publicly available data from the site to avoid that.
Amazon gets sales data, not just pricing data that can be scraped.
Its the extra data they get by controlling the platform/marketplace that becomes problematic imo.
I have no idea why you are being down voted.
Because demand based prices is manipulative bullshit from corporations.
In Oklahoma during that 2021 winter storm, demand based pricing charged power companies billions for natural gas, this in turn caused rolling blackouts until Oklahoma disconnected from the Texas. The charges were over 100x the normal rate, consumers are still playing for that winter storm with an extra surcharge which I’m guessing will stay there for a long as time.
Mind you this was caused by Texas based energy companies cheaping out when they deployed their infrastructure. And these same companies either get bailed out by the people or get windfall profits for fucking up. There is no justification for this type of pricing model.
See also Enron. https://youtube.com/watch?v=BIwFO4_SWQQ
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Amazon ain’t serving you heat and electricity. You can go get your plastic from any number of retailers. Amazon is just automating more competitor analysis and using that data to automate pricing.
There is nothing going on here that doesn’t go on in every industry. The only way they get in trouble is if they are using internal pricing data that’s only available to them. In which case they can just scrape the public data instead
Seriously bro, I live in a red state and I can’t ever remember a single conservative defend Amazon’s right to act like a monopoly.
I thought everyone agreed, the company is total shit after 2020. Do you own their stock still or are employed by them?
👌
Probably because the pricing changes weren’t driven by demand, but rather by competition.