Smart pricing algorithms can unintentionally work together to raise prices

An explanation of dynamic pricing algorithms and the factors that impact them

Rather than static prices set by manufacturers or retailers based on the costs of goods, online businesses or box stores with electronic price tags can change prices in real time based on supply, demand, time, location, and competitor prices. These algorithms can be programmed to maintain or maximize profit margins based on shoppers' willingness to spend.

Watch how algorithms can be designed to train themselves and self-improve without human input, to the point where the optimized code is too complex for programmers to understand.

Watch how algorithms can be designed to train themselves and self-improve without human input, to the point where the optimized code is too complex for programmers to understand.

Algorithms built to detect credit card fraud can deny charges if they perceive the attempted purchase is unfamiliar or unusual based on historical data, even when a person has enough credit to make the purchase.

Since fraudulent charges are rare compared with the much greater number of transactions across purchase histories, these models have been shown to be overly sensitive, lacking sufficient training data on what legitimate fraud looks like. Models also perform less reliably for groups in low-income areas or communities of color, given less available data from which to build an accurate baseline.

Artificial intelligence might make companies too efficient—which could trigger deflation

AI innovation will likely decrease costs for companies and lead to a large increase in supply. That dramatic increase could conceivably bring prices down but keep supply high. However, AI's real impact will likely be complicated by its impact on human labor and the cost of new technology.

Read about different levels of price discrimination

Price discrimination is a business practice in which different customers are charged different prices for the same product or service. It's one way for a business to boost profits and take advantage of its market position. There are three levels of price discrimination, differentiated by the consumers targeted and the reasons for discrimination.

Market concentration and high markups don't always signal a monopoly

When regulators and economists evaluate whether a company constitutes an illegal monopoly, they often consider its overall market share or its relatively high price markups. This piece argues that the Olley-Pakes decomposition is a better measure, identifying whether customers within a market are switching to more productive companies.

Regular coupon users pay less attention to the actual price of what they’re buying

The psychology of coupon users can feel counterintuitive: Research suggests regular coupon users actually prioritize coupon availability over actual price comparisons.

Prices can still feel high even if inflation is slowing

This is partly because a recent spike in inflation raised prices permanently, so even though the pace of price growth has slowed, prices have still gone up for good.

Prediction markets have faced questions about insider trading

While prediction markets encourage bettors to use their knowledge of a situation to inform their trades, these platforms have faced questions about when this borders on insider trading. For instance, traders on Kalshi can bet on who Taylor Swift's bridesmaids will be—but some worry that it would be unfair for Taylor Swift herself to earn money on that specific bet.

Bear raiding is a manipulative tactic to bring a stock price down—and part of why short selling can be controversial

Bear raids occur when short sellers use manipulative tactics—like spreading false rumors or coordinating trades—to artificially drive down a stock's price and profit from short positions. Although bear raids are an illegal form of market manipulation, they can spook investors, prompting large selloffs of shares and causing a company's value to plummet. As a result, investors may be hesitant to invest in the company in the future, creating a feedback loop of stock downturn.

Malware has transitioned from notoriety-driven to profit- and data-driven

Many of the first researchers and hobbyists who created viruses and worms showed a natural curiosity in experimenting with and designing such software to make a name for themselves and advance the field of computer science. In the future, AI-augmented malware may adapt in real-time or design enhanced cryptojackers, infostealers, and ransomware for cybercriminals.

Inside MLB's robo-umping experiment

Human umpires call roughly 94% of pitches right overall, but performance reduces on borderline pitches in high-leverage moments, the calls that shape game outcomes most. A professor and historian analyze early experiments with the full "robot ump" system that helped shape MLB's decision to implement a compromise "challenge" system.

AI tools are trained on human-created data containing implicit and explicit biases

Because AI tools reflect patterns in their training data, their outputs may reinforce existing societal biases—especially racial ones—rather than offering neutral or fair ones. Adequate training is necessary to undermine these biases whenever new data is incorporated.

Read about 'skiplagging,' a money-saving travel hack

A consumer loophole known as "skiplagging" is a travel hack where travelers purchase a cheaper flight with a layover in their destination city. The hack works when flights to other cities with layovers at your destination are cheaper than direct flights to your destination. Airlines don't like the practice, but there's no specific law forbidding it.

All-you-can-eat buffets are a practical demonstration of economic ideas

Economists have noticed some restaurant goers prefer a flat pricing model despite it usually being more expensive than per-dish costs. The strategy behind endless servings includes concepts such as economy of scale, cross-subsidization, diminishing returns (of enjoyment of excess food), and more.

NSF-funded research into matching algorithms improved the success of organ transplants

Investigations in game theory, including concepts focused on creating mutually beneficial partnerships—matching theory—led to the design of computer systems that efficiently matched kidney recipients and live donors, resulting in higher-quality matches. By 2019, these matching algorithms were used for multi-organ exchanges.

Should you use ChatGPT for budgeting?

Some people using AI to help them budget—but is it a good idea? In this article, a personal finance editor explains what happened when they tried to use ChatGPT to help them create a budget. Read the article here.

Emergency room evaluations may be improved with AI algorithms

Emergency room care teams must make fast and crucial decisions. They must determine if patients need to be admitted or discharged and when to order more tests or not. Researchers have been exploring how often patients died in the week after they were sent home and evaluating how this and other aspects of emergency care decision-making could be improved with AI algorithms to assist decision-makers.

Marketplaces on the dark web provide eBay-like vendor feedback scores

An HP analysis found that 77% of cybercriminal marketplaces require vendors to purchase a license to sell their products, which can cost up to $3,000. About 92% of these marketplaces also use a third-party dispute-resolution service to handle customer service issues, thereby promoting "honor among thieves."

Bubbles can exist in markets for collectibles, not just industries and technology

This podcast tells how "Magic: The Gathering" faced its own speculative bubble as rare cards surged in resale value—risking a Beanie Baby-style crash. It follows how the game’s creators tried to engineer a system to keep a collectibles market from collapsing.

Several major artists have embraced manipulating the Billboard charts

Billboard is supposed to be an accurate, objective representation of the country’s listening habits, but artists and their fans have discovered ways to manipulate the magazine’s methodology in order to push tracks to the top of the charts. In 2018, Taylor Swift rewarded fans for purchasing her album multiple times; in 2020, Justin Bieber reposted suggestions that fans repeatedly stream one of his songs while they sleep.

How Google Street View generates profit

Google Maps, one of the most trusted navigation applications today, has a somewhat mysterious way of making a profit. YouTuber Phil Edwards uncovers the secret economic practices of Google Street View, while also offering a deeper understanding of how it works.

Meta's acquisition strategy for Instagram and WhatsApp led to a 5-year-long antitrust lawsuit

In 2020, the Federal Trade Commission sued Meta as part of the agency's efforts to rein in big tech companies. The FTC alleged that Meta overpaid for Instagram and WhatsApp in a "buy or bury" strategy to gain access to those companies' talent and diminish competition. In 2025, a federal judge sided with Meta, citing intense change in the social media landscape.

How chaos helps explain why small market corrections can produce major economic instability

Oxford University complex systems professor Doyne Farmer discusses how predictions from many economic models are overly weighted toward simple relationships, such as supply and demand, and external shocks, such as the COVID-19 pandemic. However, real-world macroeconomic systems involve public and private actors interacting, producing feedback loops and cascading effects that resemble the oscillatory behavior seen in chaotic systems.

How congestion pricing is trying to fix downtowns

Billions of gallons of gas are wasted each year as US drivers sit in traffic losing billions of hours of time. The congestion problems big downtowns face has led to innovative interventions to try to stop the traffic, including congestion pricing, a...

A vending machine run with Anthropic's AI went out of business after it was convinced to give away items for free and sell a video game console.

Hedge funds, the private investment firms that trade a wide swath of financial assets, make money by imposing steep fees on investors and from the fund's investment performance.

The price of gas is a composite made up of several different factors, with the federal gas tax making up less than 20% of what drivers pay at the pump.

How Amazon operates a 'flywheel' business model, a self-reinforcing cycle that drives continuous growth

Netflix profits when you're not watching, and its movies are designed that way—read a detail-rich critical essay exposing lesser-known Netflix takes

Art theft is the third-largest source of criminal revenues worldwide, thanks in part to the subjective nature of valuing a work of art.

Warren Buffett's former professor Benjamin Graham is known as the 'father of value investing,' a strategy in which investors seek to buy stocks trading below their intrinsic worth.

Gerrymandering works through two techniques: cracking opposing voters across districts to dilute their power, and packing them into a few to waste their votes in lopsided majorities.

Clever Hans was a 1900s horse that was believed to be able to solve math equations, tell time, and read and comprehend German, until a psychology student discovered how he got his answers.

Radioactive elements can introduce software errors because the ionizing radiation they produce can detach electrons from atoms, and computer code relies on the distribution of electrons.

Chaos theory—informally known as the butterfly effect—is the reason why weather forecasts are presented with probabilities rather than certainties.

The term 'algorithm' originated from the Latinized name of al-Khwārizmī, a 9th-century mathematician whose works introduced Arabic numerals and the decimal-based numeral system to Europe and whose treatise 'Al-Jabr' gave algebra its name.

In 2019, a laptop loaded with six of the worst malware in history and described as 'an exhibit of historical weaponry' sold for $1.3M.

Electrical grids worldwide must double their power delivery capacity by 2050 to meet surging demand from AI and electric vehicles.

Indefinite cloning of some endangered species may not sustain their longevity because cloning success rates decrease as genetic mutations accumulate.

Use this tool to calculate the dollar value of your parental mental load, from meal planning to coordinating after-school care, then see resources that help generate solutions.

When a Paris department store hesitated to sell Estée Lauder's perfume, she 'accidentally' broke a bottle, causing the smell to spread throughout the store and shoppers to start asking to buy the scent.

In 2025, four executives from large tech companies were given positions in the US Army Reserves—including Palantir Chief Technology Officer Shyam Sankar, which reinforced Palantir's ties with the US military and its role as a leading defense partner.

US housing costs have risen by roughly 175% between 1991 and 2026—but a growing number of Gen Zers are becoming homeowners anyway. In 2025, 4% of homebuyers were Gen Z, up from 3% the year before.

Telehealth demand for GLP-1s for weight loss is booming as consumers seek easier access.

Some coin denominations have ridges etched on their sides, partly to prevent counterfeiting, in a practice called 'reeding.'

To reduce wrinkles in clothing, research recommends gentle wash cycles with more water and tumble drying with smaller loads and longer times.

Recent research found that the brain doesn't seem to massively rewire following amputation—upending earlier beliefs about the cause of phantom limb pain.

Long before Major League Baseball began allowing instant replay for balls and strikes, an umpire reluctantly used the technology to determine whether a hit was a home run, a move that inadvertently ushered in a new era for the sport.