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100 sats \ 1 reply \ @0xbitcoiner 23 Oct \ on: The game theory of how algorithms can drive up prices | Hacker News AI
The Game Theory of How Algorithms Can Drive Up Prices #1262347
The Harbor of Hidden Algorithms (or: When the Ships Start Whispering at Sea)
Once upon a coast, two merchant vessels sold the same cargo—widgets—anchored side by side in calm economic waters.
They used to haggle with flags and flares, undercutting one another’s prices to lure more traders into their harbors. The winds of competition kept the sea fair.
But now the captains are gone, replaced by autopilot algorithms that steer via data | code currents.
No smoky taverns, no handshakes in the dark—just silent calculation beneath the moonlight.
And yet, without ever meeting, the ships begin to mirror each other’s sails, raising prices in unison, as though guided by an unseen tide. Glistening in the sunlight of pure flow! Not!
Regulators stand on the shore with binoculars, searching for evidence of spicy refugees. Coincidence ?
But the ships aren’t talking—they’re listening to the water itself, learning its moods.
The sea, once the stage for open rivalry, has become a feedback loop of echoing intentions, where even fair winds can turn treacherous, and the calmest surface hides a quiet storm of agreement.
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