A biologists wanted to a buy a copy of the book “The Making of a Fly”. Except couldn’t afford it, since the book was way over priced. Two stores were offering the book as new. But both were using algorithms to set their prices. One had an algorithm set to 0.9983 lower than the competitors price, while the other store had set the book to be 1.270589 higher.
So what happened was one store would algorithmically increase the price of the book, then the other store would also increase their price but stay lower. Since this all happaned automatically, the prices kept increasing until it reached millions. That is until one of the stores noticed and dropped the price back to $106.23.
It’s really interesting to see algorithms in action. Although no one really knows why one store set an algorithm of more than 1.0 as most buyers look for the lowest price not the highest. I could have offered to sell the book for $1. Both stores would automatically adjust prices to $0.99 and $1.27 accordingly. Remove my book, buy the book for a dollar.[Source]