Re:Zillow lost money because they weren't willing to lose money
by dsizzle on Saturday November 27, 2021 @12:12PM
(#29361636)
Even if their ML model provided excellent predictions, another potential problem they may not have accounted for is adverse selection: the only takers may have been on houses whose bids were too high.
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Re:Zillow lost money because they weren't willing to lose money
by aetherson on Saturday November 27, 2021 @11:02PM
(#29366070)
It seems very difficult for me to imagine that they didn't anticipate adverse selection and try to account for it. I mean, clearly something went wrong somewhere, but I feel like people are acting like they had never heard of adverse selection until now.