I don't buy this. Doesn't supply and demand fix this unless of course you are dealing with a monopoly and have no choice. Don't customers find the most affordable goods in the market place and aren't goods priced competitively? What am I missing?
If all the airlines (or whatever business) are doing something like this, how would you know what the prices are and what the alternatives are? Custom prices per user based on willingness to pay shifts market value around a lot.
> If all the airlines (or whatever business) are doing something like this
Then that would be the main issue and far worse then the algorithms, that's a monopoly or cartel and not a free market. Because in a competitive market prices will be competitive with very little arbitrage.
When the algorithm is for estimating consumer surplus, the line between coordination and independent cost-optimization disappears.
Why would you try to one-down on price if an “objective statistical AI algorithm” tells you you’d be leaving money on the table without gaining market share to compensate? All it takes is for the market to be sufficiently concentrated at that point.
I've got news for you there. The Biden administration tried to take the first real antitrust action in decades and then suddenly a bunch of tech oligarchs switched from supporting Democrats to supporting a convicted felon
