2 ms·
If things keep going this way, we will all end up paying the maximum an AI or algorithm thinks you can/will pay based on all of the data about you, your region,
by candiddevmike 3y ago
If things keep going this way, we will all end up paying the maximum an AI or algorithm thinks you can/will pay based on all of the data about you, your region, your friends, etc. For everything, not just rent.
- jeffbee 3y agoYou forgot the big input: how many other lessors are offering properties. There isn't a dial that owners can turn to just raise rents in a 2-sided market.
- candiddevmike 3y agoWho cares about other lessors if they're using the same algorithm (or a similar enough algorithm from a different company)?
- johngladtj 3y agoThe seller, since them accounting for the algorithm allows them to undercut the competition and make a profit. The algo is a red herring, supply and demand conquers all.
- WalterBright 3y agoYou're quite right. The trouble with cartels is the incentive to cheat by offering a better price under the table is very hard to resist. For example, auto dealers often will sign terms with the manufacturer saying they won't sell a car below a certain price. But the dealers can (and do) "cheat" on this by throwing in extended service plans, below-cost financing, a higher price on your trade-in, etc. A common theme on HN is that people cannot negotiate prices. They can, all the time. All that's needed is to try. Even just saying "is a discount available" will often get you 10% off. (Of course, you have to be nice about it.)