Amazon used algorithm to test how much it could raise prices: FTC
> The algorithm helped Amazon improve its profits on items across shopping categories, and because of the power the company has in e-commerce, led competitors to raise their prices and charge customers more...In instances where competitors didn’t raise their prices to Amazon’s level, the algorithm—which is no longer in use—automatically returned the item to its normal price point.<p>> The company also used Nessie on what employees saw as a promotional spiral, where Amazon would match a discounted price from a competitor, such as Target.com, and other competitors would follow, lowering their prices. When Target ended its sale, Amazon and the other competitors would remain locked at the low price because they were still matching each other...<p>Soooooo....it used the algorithm to raise prices, but also lower them?<p>Anyone want to try their hand at an actual headline?