Amazon’s $23,698,655.93 book about flies

Yike Lu

Finder of biased coins.
Joined
5/10/10
Messages
772
Points
53
http://www.michaeleisen.org/blog/?p=358

As I amusedly watched the price rise every day, I learned that Amazon retailers are increasingly using algorithmic pricing (something Amazon itself does on a large scale), with a number of companies offering pricing algorithms/services to retailers.
...
My preferred explanation for bordeebook’s pricing is that they do not actually possess the book. Rather, they noticed that someone else listed a copy for sale, and so they put it up as well – relying on their better feedback record to attract buyers. But, of course, if someone actually orders the book, they have to get it – so they have to set their price significantly higher – say 1.27059 times higher – than the price they’d have to pay to get the book elsewhere.

Amazon arb...
 
I was hoping 1.27059 would be the golden ratio, but it's not :(

e56262605a4d95fefb0b421850d267bd.png


also close,
1 + (1 / e) = 1.36787944
 
How many days did it take to reach this level (approx.)? Let's say recalculation occurred once a day for each algorithm (no holidays) and starting point is somewhere around the stated $106.23.
 
I get 47 days, with starting price of $100.99 (starting April 13th)
 
Back
Top Bottom