An explanation for the multi-million dollar books on Amazon – algorithmic pricing

At first I thought it was a joke – a graduate student with too much time on their hands. But there were TWO new copies for sale, each offered for well over a million dollars 다운로드. And the two sellers seemed not only legit, but fairly big time (over 8,000 and 125,000 ratings in the last year respectively). The prices looked random – suggesting they were set by a computer realtek HD 오디오 관리자. But how did they get so out of whack?

Amazingly, when I reloaded the page the next day, both priced had gone UP! Each was now nearly $2.8 million 다운로드. And whereas previously the prices were $400,000 apart, they were now within $5,000 of each other. Now I was intrigued, and I started to follow the page incessantly 윈도우 보안 패치 다운로드. By the end of the day the higher priced copy had gone up again. This time to $3,536,675.57. I continued to watch carefully and the full pattern emerged 다운로드.

 

 

Once a day profnath set their price to be 0.9983 times bordeebook’s price 다운로드. The prices would remain close for several hours, until bordeebook “noticed” profnath’s change and elevated their price to 1.270589 times profnath’s higher price 윈도우 서버 업데이트 다운로드. The pattern continued perfectly for the next week.

But two questions remained. Why were they doing this, and how long would it go on before they noticed 다운로드? As I amusedly watched the price rise every day, I learned that Amazon retailers are increasingly using algorithmic pricing (something Amazon itself does on a large scale), with a number of companies offering pricing algorithms/services to retailers consolas 폰트 다운로드. Both profnath and bordeebook were clearly using automatic pricing – employing algorithms that didn’t have a built-in sanity check on the prices they produced 드럼 효과음 다운로드.

via Michael Eisen