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Amazon reportedly used a secret algorithm to jack up prices — A new report details Amazon’s Project Nessie pricing algorithm (www.theverge.com)

submitted 1 year ago by [email protected] to c/[email protected]

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Amazon reportedly used a secret algorithm to jack up prices — A new report details Amazon’s Project Nessie pricing algorithm::Amazon deployed a secret algorithm to gauge how high it could raise prices before its competitors stopped increasing their prices as well.

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[–] [email protected] 26 points 1 year ago (1 children)

Surely every company makes decisions on how best to increase income, that's a pretty significant part of being a business.

[–] [email protected] 5 points 1 year ago

Right? Amazon's monopoly is definitely a problem but this part feels pretty par for course. Finding the sweet spot between price/competition/demand is like business fundamentals 101. I can assure you this is something all major retailers consider. There are also many analytics companies with their own "secret" algorithms (this probably just means proprietary?) focused on things things like pricing elasticity and optimization and are targeted to these retailers.