A quite amusing post I stumbled upon describes pricing algorithms used by book retailers at Amazon.com, and what happens when two retailers use such algorithms. I am pretty sure that economists can say much about the use of these algorithms, optimal pricing algorithms, whether the customer gains or loses when retailers use them, and other similar questions. Alas, I am a mathemtician, so all I can do is read the post and smile.
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1 comment
October 30, 2012 at 4:24 pm
Jim S
There are a ton of potential exam questions hidden in an example like this.