Monday, April 25, 2011

Must Be A Hell Of A Read


Interested in Peter Lawrence's The Making of a Fly?  Published in 1992, it's currently out of print and beneficial to developmental biologists. And if you've got $23,698,655.93, you can pick up a new copy!

A used copy sells for only $35, but brand new, you'll get raped in the pocketbook. It was the work of an algorithmic pricing strategy between two companies, Bordeebook and Profnath.

Michael Eisen, who tracked this price escalation, first noted the Bordeebook was 1.270589 times the price of the copy offered by Profnath. Shortly after another price increase, the Bordeebook copy was 1.270589 times Profnath again. Basically, Profnath set their price to be 0.9983 times Bordeebook's price once a day. The prices would be fairly close for hours, until Bordeebook "noticed" Profnath's change and raised their price to 1.270589 times Profnath's higher price. The pattern continued perfectly for the next week of his observation.

Everybody is worried that Skynet is going to take out the human race, but it could be Amazon and a program that kills it with over the top prices first.

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