J. Nathan Matias 🦣

As a PhD student, I was fascinated to see how many bright peers were developing price-fixing algorithms, under the rationale of market optimization and helping businesses.

This month, the FTC reminded everyone that this is still illegal.

https://www.ftc.gov/business-guidance/blog/2024/03/price-fixing-algorithm-still-price-fixing?utm_campaign=landlords_and_property_ma&utm_content=1709317844&utm_medium=social&utm_source=linkedin

Price fixing by algorithm is still price fixing

Landlords and property managers can’t collude on rental pricing. Using new technology to do it doesn’t change that antitrust fundamental. Regardless of the industry you’re in, if your business uses an algorithm to determine prices, a brief filed by the FTC and the Department of Justice offers a helpful guideline for antitrust compliance: your algorithm can’t do anything that would be illegal if done by a real person.

Federal Trade Commission
Mar 2, 2024 at 1:33pmWeb
Show threadCurt ThomasMar 2, 2024
@natematias this got me thinking; what if there was a tenant's co-op of sorts, where landlords seeking tenants could go to bid on tenants, and bad actors could be barred from participating or boycotted? I don't think the rental market is robust enough to support this ATM, but it's fun to think about a world with more housing in the places that need it.
Show threadOren BellMar 2, 2024
@conditional_soup @natematias or just cut out landlords entirely. Have the tenant co-op own the building and they hire a property manager to oversee maintenance. But when the property value inflates, it's the tenants who profit from owning equity, not a do nothing landlord
Show threadDarwin WoodkaMar 2, 2024
@natematias tell it to the companies rigging rents nationwide
Show threadsanfierroMar 2, 2024
@natematias My uni project is to develop a smart class solution, one of the things it does is automated row call: students check in with their RFIDs. What do you think about it? Is it ethical?
Show threadFeatherless BipedMar 2, 2024
@sanfierro @natematias proper education hinges on putting all the students into little boxes
Show threadsanfierroMar 3, 2024
@trammell @natematias I still haven't interpreted this reply. Is it a yes or a no? A food for thought? A satire? A statement of how things are? A statement of how things should be? A joke? A comment without much thought?
Show threadKen GoldshollMar 2, 2024
@natematias the algorithms that airlines, hotels, and car rental companies use seem to reduce competition
Show threadThe DoctorMar 2, 2024
@natematias That's kind of a new hire project these days.
Show threadRandom Geek in limboMar 3, 2024
@drwho @natematias gotta start them on the slippery slope early!
Show threadkira :3Mar 2, 2024
@natematias "your algorithm can’t do anything that would be illegal if done by a real person"    
Show threadJohn GordonMar 2, 2024

@natematias There are so many ways to fix prices. Pharma is the worst — so much complexity makes price fixing relatively easy.

It’s a never-ending battle.

Show threadJaime Henriquez, Ph.D.Mar 3, 2024

@natematias Hurray for the FTC! Price-fixing by algorithm is just as bad as price-fixing by any other method. No, I'm wrong, it's Worse!

It's worse because it's Easier than getting together and colluding in person, Faster (and therefore more adaptive), Cheaper, and more "Acceptable."

OK, that last one needs unpacking. How is price-fixing, or an algorithm, acceptable?

More acceptable? OK, that needs unpacking. ...

Show threadJaime Henriquez, Ph.D.Mar 3, 2024

@natematias

Algorithms have Status, they sound mathematical, certain, "cool" (which will pass), and most importantly, like it's not Really You and your Price-fixing Friends that are doing this, noooo! It's the computer, it's progress, it's some Juggernaut of inevitable automation that can't be (or shouldn't be) impeded.

Show threadJaime Henriquez, Ph.D.Mar 3, 2024

@natematias

OK, it's clear to me, and you, that I do not know how to put something this long onto Mastodon in a way that is convenient for readers. Any pointers would be much appreciated. - Jaime