Posts tagged ‘positive feedback’

April 27, 2011

skyhooks of the amazons

by Jacob Lee

One of the interesting things about the modern human environment is the extent to which autonomous processes and artificial intelligent agents of various kinds (and intelligences) not only figure in determining the situations in which we navigate, but figure in determining the situations in which *they* (the artificial intelligent agents ) navigate as well. For example, many retailers use automated pricing bots on sites like Amazon. Frequently these bots base pricing judgments  upon the prices of similar items being sold by their competitors. As might be expected, this can lead to various interactions between bots as they adjust to changes in other retailers prices. Sometimes the result can be amusing, even fascinating, as blogger Machael Eisen relates in his investigation of two absurdly priced books at Amazon daily ratcheting up in price:

What’s fascinating about all this is both the seemingly endless possibilities for both chaos and mischief. It seems impossible that we stumbled onto the only example of this kind of upward pricing spiral – all it took were two sellers adjusting their prices in response to each other by factors whose products were greater than 1. And while it might have been more difficult to deconstruct, one can easily see how even more bizarre things could happen when more than two sellers are in the game.

Enjoy!