toocapak t1_its4dya wrote on October 25, 2022 at 10:05 PM

Reply to comment by plummbob in Rent too damn high? Landlords have formed an illegal cartel according to several reports by cogitator_tertius

The crux of the issue is price setting. Not software or an algorithm. All that talk is ignoring the simple, bigger issue.

Real Estate professionals use algorithms and software all day long to help them with pricing/pricing adjustments based off location/size/condition.

GMUcovidta t1_its6ab7 wrote on October 25, 2022 at 10:19 PM

All large companies across industries use algorithms and software to help determine price increases.

RVAMS t1_itsb9ho wrote on October 25, 2022 at 10:56 PM

Yeah but generally three competing companies in the same market aren't using the same algorithm. An algorithm that one company uses, that feeds of the data that it set for another company will artificially inflate prices like we're seeing here. That is price fixing.

ttd_76 t1_ittcuvz wrote on October 26, 2022 at 3:55 AM

It's if the price setting is a result of stifling of competition.

The way collusion distorts free markets is if the colluding companies have enough clout to gang up and stop those that want to undercut them.

If you decide to charge $10k for your apartment, and I see that you are able to rent it and I then raise my rent to $10k, that's not an efficiency problem.

If you decide to charge $10k for your apartment and I decide that you are an idiot and I will take your customers by undercutting your prices, but then you are able to start hassling my tenants or making frivolous charges about alleged violations then it is an issue.

That's the problem. Not that companies cooperate in some fashion against consumers, but that they cooperate in some fashion against potential competitors... which then obviously creates higher prices and hurts consumers.