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A comment on Apple is struggling to become an AI powerhouse. Parent comment

Re:Apple is struggling to become an AI powerhouse by old-gregg on Thursday June 08, 2017 @05:53PM (#14517467)
Actually, no. Such price isn't "efficient" because of how efficient markets are defined [1]: "...prices fully reflect all available information." But in this case one of the market participants (you) are not aware that others are getting a better deal.

In fact, this would lead to widespread pricing discrimination [2] based on what they learned (or bought) about you. Imagine seeing 20% markup on virtually everything available to you online, because every retailer can see your higher-than-average income before their page loads in your browser.

Personalized content (which everyone seems to love) is just an inch away from personalized pricing.

[1] https://en.wikipedia.org/wiki/Efficient-market_hypothesis

[2] https://en.wikipedia.org/wiki/Price_discrimination

[ Parent | on HN ]
Re:Apple is struggling to become an AI powerhouse by AndrewKemendo on Thursday June 08, 2017 @06:00PM (#14517505)
Yes, note the all available information.

It's not perfectly efficient because there isn't perfect information, however it's more efficient than it otherwise would be.

More information in the system = greater efficiency.

[ Parent | on HN ]
Re:Apple is struggling to become an AI powerhouse by freyir on Thursday June 08, 2017 @06:50PM (#14517775)
> More information in the system = greater efficiency.

More information does not always increase market efficiency. In fact, it can have just the opposite effect when there is information asymmetry.

https://en.wikipedia.org/wiki/Information_asymmetry

http://www.economicsonline.co.uk/Market_failures/Information...

[ Parent | on HN ]
Re:Apple is struggling to become an AI powerhouse by AndrewKemendo on Thursday June 08, 2017 @08:29PM (#14518309)
For sure, but only in the short term. History shows that there is a push and pull here and that on aggregate more information is being input to the market from all sides and available for price discrimination. Inefficiencies are great for enterprises to attempt to capture, and by doing so exposing the inefficiency.
[ Parent | on HN ]