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I think that is a good question. I am not 100% but I do think you could take the algorithm to extremes and it does matter. Algorithm A - professionally_evaluat
by minkzilla 3y ago
I think that is a good question. I am not 100% but I do think you could take the algorithm to extremes and it does matter.
Algorithm A - professionally_evaluated_price + inflation
Algorithm B - average_price_of_cohort_you_agreed_to_join + 0.01
The first algorithm is super simple and is conceivably how many landlords might do it anyway and is based on value of your goods. Everyone using it wouldn't raise prices or hurt consumers. The second algorithm is basically agreeing with a cohort that you will never undercut each other and slowly raise prices. This obviously hurts renters and raises prices.
- chii 3y agobut algorithm B requires that the cohort you joined be big enough to have a material effect on the market price of said goods/services. So at that point, it's not the algorithm, but the cohort that's at fault of price fixing. So is there proof that you joined a cohort? Does using the same software count as joining a cohort?
- fbdab103 3y agoThese two bullet points from the article seem to indicate that RealPage covers a large swath of the market, and that compliance is mandatory. >The software company actively "polices" landlords to ensure that they comply with the rent cost it generates, the lawsuit alleges. Failure to impose the RealPage rents could lead to landlords being expelled from the organization, according to the suit. > RealPage's software has set the rent at more than 30% of apartments in multifamily buildings in D.C. and 60% of units in large multifamily buildings, per the lawsuit. The percentages are even higher for the broader D.C. metro area.
- minkzilla 3y agoDo you have to be successful in price fixing for it to be illegal or is just trying to price fix enough? That is a serious question - I do not know.