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by johngladtj 803 days ago
The seller, since them accounting for the algorithm allows them to undercut the competition and make a profit.

The algo is a red herring, supply and demand conquers all.

1 comments

You're quite right. The trouble with cartels is the incentive to cheat by offering a better price under the table is very hard to resist.

For example, auto dealers often will sign terms with the manufacturer saying they won't sell a car below a certain price. But the dealers can (and do) "cheat" on this by throwing in extended service plans, below-cost financing, a higher price on your trade-in, etc.

A common theme on HN is that people cannot negotiate prices. They can, all the time. All that's needed is to try. Even just saying "is a discount available" will often get you 10% off. (Of course, you have to be nice about it.)