Good question. I don’t know. There are a lot of possible interacting causes. Let’s itemize a few. So there is not checking. This seems unlikely given, as you p

Good question. I don’t know. There are a lot of possible interacting causes. Let’s itemize a few. So there is not checking. This seems unlikely given, as you point out, it’s data right at hand and, as I point out, they publish checks. In general, I’m suspicious of WOW PEOPLE ARE STUPID explanations. There is checking and mistranslating model accuracy into business outcomes. The model is 90% accurate. Bid for 1000 houses. Maybe mainly people in the wrong by overpricing segment take you up on it. See the vast literature on adverse selection and winner’s curse. There is tweaking the model because you want the a certain outcome. > Over the last few weeks, it’s become clear that Zillow made a lot of mistakes. It tweaked its algorithm to be more aggressive with offers, winning bidding wars just as the market was starting to cool and overpaying for properties [1] The CEO has commented that the volatility of the prediction was a problem. He mentioned that the unit economics swung from over plus 5% to minus 7%. So the model might be a accurate on average but too noisy for their purpose. [2] Point is it’s not at all obvious that the problem here was accuracy on predictions of house prices. [1] https://www.curbed.com/2021/11/zillows-i-buying-algorithm-house-flipping.html https://www.curbed.com/2021/11/zillows-i-buying-algorithm-ho... [2] https://www.google.com/amp/s/seekingalpha.com/amp/article/4464694-zillow-group-inc-z-ceo-rich-barton-on-q3-2021-results-earnings-call-transcript https://www.google.com/amp/s/seekingalpha.com/amp/article/44...