Say two Amazon merchants start using an algorithm to reprice their books based upon the prices set by rivals. Fine. Now say that two merchants pick one another's prices and a recursive repricing loop begins. What happens next? Perhaps you assume that the automatic price war would send prices spiraling rapidly down. In the case of Peter Lawrence's The Making of a Fly, you would be mistaken. [Michael Eisen via Hacker News]
Algorithmic pricing loop sends book prices into orbit
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