4 ms·

It's time to start legislating against dynamic pricing. I don't know if this particular claim is true but dynamic pricing is getting out of control. Things sho

by jmyeet 2y ago

It's time to start legislating against dynamic pricing. I don't know if this particular claim is true but dynamic pricing is getting out of control. Things should have an advertised price rather than some amorphous ML system deciding to charge you more because you're desperate or you can afford it (according to some criteria). These companies have to be careful too because they may open themselves up to discrimination claims. There are protected classes you can't discriminate against under federal law. Facebook already settled a case of race discrimination in housing ads [1]. This has nothing to do with dynamic pricing but I guarantee you dynamic pricing will open up more of these issues. [1]: https://www.justice.gov/opa/pr/justice-department-secures-groundbreaking-settlement-agreement-meta-platforms-formerly-known https://www.justice.gov/opa/pr/justice-department-secures-gr...

fsckboy 2y ago
there's nothing wrong with dynamic pricing, but there is a lot wrong with price discrimination, bait and switch, hidden fees, and outright fraud. (and we know that uber has historically engaged in many highly dishonest practices) here's my favorite rideshare gouge, I'm sure others have had the same experience. "currenly 20 minute wait, upgrade to uber+$ for 3 minute availability?" YES! "OK booked, your ride at the higher rate is on the way, currently 20 minutes away!" now, it is possible that "offer" message was shown to a bunch of people at the same time and somebody snagged it in front of me leaving only the other car 20 mins away, i.e. the computer was "honest", but I shouldn't be paying the higher rate. clever programmer types can come up with other scenarios, the point is, we need guarantees that the market making is honest, or we need regulation.
hinkley 2y ago
I don't think it's necessarily the case that dynamic pricing shouldn't exist at all (eg, cooperative load shedding on the electrical grid). However I should, as someone who just left a concert, have a notion as to how much it's in my best interests to either rideshare with my friend and deal with two stops, or walk up the street to a restaurant and kill an hour or two while we wait for the chaos to dissipate. If the price difference is going to pay for a drink or an appetizer, then maybe I voluntarily timeshift. And we don't seem to be near that bar at the moment.
josephcsible 2y ago
IMO, totally banning dynamic pricing is too far. Wouldn't it solve this problem just as effectively if dynamic pricing were still allowed, but the algorithm had to be fully open?
komali2 2y ago
A great way to fight dynamic pricing is to force companies to compete with the government. Uber is going to have a lot of fun pricing a market where the bus is 10x cheaper and faster than the Uber thanks to dedicated lanes.

by jmyeet 2y ago

fsckboy 2y ago

there's nothing wrong with dynamic pricing, but there is a lot wrong with price discrimination, bait and switch, hidden fees, and outright fraud. (and we know that uber has historically engaged in many highly dishonest practices) here's my favorite rideshare gouge, I'm sure others have had the same experience. "currenly 20 minute wait, upgrade to uber+$ for 3 minute availability?" YES! "OK booked, your ride at the higher rate is on the way, currently 20 minutes away!" now, it is possible that "offer" message was shown to a bunch of people at the same time and somebody snagged it in front of me leaving only the other car 20 mins away, i.e. the computer was "honest", but I shouldn't be paying the higher rate. clever programmer types can come up with other scenarios, the point is, we need guarantees that the market making is honest, or we need regulation.

hinkley 2y ago

I don't think it's necessarily the case that dynamic pricing shouldn't exist at all (eg, cooperative load shedding on the electrical grid). However I should, as someone who just left a concert, have a notion as to how much it's in my best interests to either rideshare with my friend and deal with two stops, or walk up the street to a restaurant and kill an hour or two while we wait for the chaos to dissipate. If the price difference is going to pay for a drink or an appetizer, then maybe I voluntarily timeshift. And we don't seem to be near that bar at the moment.

josephcsible 2y ago

IMO, totally banning dynamic pricing is too far. Wouldn't it solve this problem just as effectively if dynamic pricing were still allowed, but the algorithm had to be fully open?

komali2 2y ago

A great way to fight dynamic pricing is to force companies to compete with the government. Uber is going to have a lot of fun pricing a market where the bus is 10x cheaper and faster than the Uber thanks to dedicated lanes.