Algorithmic pricing gone critical - Re: PDP-10 programming [was RE: Dumb Terminal games (was Re: Looking for a small fast VAX development machine)]

[Toby Thain]

On 2016-03-01 7:36 PM, Sean Conner wrote:
> It was thus said that the Great Rich Alderson once stated:
>>
>> For most hobbyists, even $100 is too much.  I was simply astounded at the
>> chutzpah of the seller--right there on the Amazon list--who was asking
>> nearly $1500 for a copy.
>
>    I think that comes from an unchecked computer algorithm, not simple greed.
> I think what's happening here is someone (some Amazon third party) offered
> the book for, say, $5.  Another third party scans Amazon for such books, and
> offers it for say, $6, with the hope that you (the potential buyer) will
> only see their their offer for $6 and buy from them, at which point they
> will buy it for $5 from the original seller, sell it to you for $6 and
> pocket the $1 profit.  The problem comes when a third third-party seller
> sees the offer for $6 and does the same thing as the second one, only now
> they're offering it for $7, will pay $6 for it and pocket $1 profit.
>
>    Keep repeating that process and you end up with books selling for $1500.

Or more:
http://www.michaeleisen.org/blog/?p=358
etc.

Remind me why HFT is a great idea...

>
>    -spc (Who knows?  If you keep searching, you might find the original
> 	seller selling it for $5 ... )
>