4 ms·

AI may actually be the death of capitalism. Markets are no longer efficient when pricing models are opaque and personalized.

mmcconnell1618 1y ago
Looks like an opportunity to sell a price negotiation AI to all consumers. Get paid on both sides of the AI wars.
glorpsicle 1y ago
This is Delta's choice, though. There are still quite a few other airlines, for the "average" flight, and fliers still reserve the right to vote with their wallets if they perceive better value elsewhere, meaning Delta may have to adjust to that (depending on the risk they're willing to take/how accurate their personalized pricing models are).
- chronic0262 1y ago
  > and fliers still reserve the right to vote with their wallets if they perceive better value elsewhere Yup. Most likely outcome is passengers won’t care.
- bee_rider 1y ago
  I think they are talking about the technical definition of free markets and the mathematical result that they result in efficient pricing under some conditions (one of the conditions is perfect pricing information). We aren’t in an ideal capitalist system in the theoretical sense, of course. It is just a model. But it is maybe worthwhile to keep tabs on how far we’re diverged from it…
bee_rider 1y ago
Free markets might be in trouble. Capitalism might survive just fine, right? What is capitalism anyway (ima technical sense, as distinct from free markets). I think it is something about capital owning the means of production or something like that.
ryandvm 1y ago
This is an underrated take. Free markets don't work in information war zones. The basis of the free market ideology is that rational actors with perfect information will result in competition that produces high-value trades. AI based information warfare between buyers and sellers is going to have a Darwinian effect on marketplaces that evolves sellers that are primarily skilled in adversarial and highly targeted pricing tactics.

mmcconnell1618 1y ago

Looks like an opportunity to sell a price negotiation AI to all consumers. Get paid on both sides of the AI wars.

glorpsicle 1y ago

This is Delta's choice, though. There are still quite a few other airlines, for the "average" flight, and fliers still reserve the right to vote with their wallets if they perceive better value elsewhere, meaning Delta may have to adjust to that (depending on the risk they're willing to take/how accurate their personalized pricing models are).

chronic0262 1y ago
> and fliers still reserve the right to vote with their wallets if they perceive better value elsewhere Yup. Most likely outcome is passengers won’t care.
bee_rider 1y ago
I think they are talking about the technical definition of free markets and the mathematical result that they result in efficient pricing under some conditions (one of the conditions is perfect pricing information). We aren’t in an ideal capitalist system in the theoretical sense, of course. It is just a model. But it is maybe worthwhile to keep tabs on how far we’re diverged from it…

bee_rider 1y ago

Free markets might be in trouble. Capitalism might survive just fine, right? What is capitalism anyway (ima technical sense, as distinct from free markets). I think it is something about capital owning the means of production or something like that.

ryandvm 1y ago

This is an underrated take. Free markets don't work in information war zones. The basis of the free market ideology is that rational actors with perfect information will result in competition that produces high-value trades. AI based information warfare between buyers and sellers is going to have a Darwinian effect on marketplaces that evolves sellers that are primarily skilled in adversarial and highly targeted pricing tactics.