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“Welcome To The Hotel California”:The Beast of Algorithmic Pricing

BY | February 6, 2019

By Jay L. Himes & Tianran Song  The emergence of the internet and technological invocation has nurtured development of dynamic pricing algorithms, capable of monitoring market activity and of setting…

By Jay L. Himes & Tianran Song 

The emergence of the internet and technological invocation has nurtured development of dynamic pricing algorithms, capable of monitoring market activity and of setting product prices. Efficiency in pricing, eventually reaching equilibrium where supply and demand meet, is the holy grail of economics. But what if implementation practicalities produce prices that favor suppliers over customers, with monopoly prices squeezing surplus from consumers? Algorithmic p

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