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I don't think people realize how much dynamic pricing disrupts what we think of as capitalism, and many of the benefits it creates. The idea of goods having sin
by bbctol 9y ago
I don't think people realize how much dynamic pricing disrupts what we think of as capitalism, and many of the benefits it creates. The idea of goods having singular prices, determined by the market, has been taken for granted by proponents of the "invisible hand" and so forth.
Now we are returning to a world of haggling, but a world in which the cognitive abilities of the haggler can be purchased: more sophisticated algorithms can out-maneuver a human in a business transaction just as they can a chess game. The struggle between buyer and seller resumes without any hope of a truce, and any new businesses trying to sell their product without cognitive advantage can never compete. I mean, I'm definitely letting myself wander into science fiction land here, but this is a pretty big shift and I don't know how it can end (unionized consumers is the tamest way of describing a complete revolution of economics.)
- tutufan 9y agoArguably this is how capitalism works, at a very retail level. If your counterparty isn't trustworthy, though, it's more like a market for lemons. Which as you are thinking, might not be good for either party.
- _rpd 9y ago> The idea of goods having singular prices, determined by the market My impression is that anyone in business who is more than a couple of years out of college understands that market prices are a spread around a moving average.