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Patrick McKenzie@patio11• about 1 year ago

I love Amazon’s “Can we bribe you with a $3 Kindle credit to delay a shipment by a day for cost-control reasons?” option.

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8/21/2024

Patrick McKenzie@patio11• about 1 year ago

Replying to @patio11

More broadly, there are a LOT of operational inefficiencies that we tolerate in the world because transaction costs are high and there is no information pathway between X and Y. Pervasive mobile apps (and soon, AIs?) might smooth out many of them.

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8/21/2024

Patrick McKenzie@patio11• about 1 year ago

Replying to @patio11

You could imagine, for example, “We need to schedule someone for the dentist in the following week but the schedule is full… at current prices, I mean. Quick, have the LLMs hold an auction live on the call.”

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8/21/2024

Patrick McKenzie@patio11• about 1 year ago

Replying to @patio11

“OK, Taro probabilistically willing to rebook for a $75 account credit at p 0.95, backup is Mary but it will cost us.”

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8/21/2024

Patrick McKenzie@patio11• about 1 year ago

Replying to @patio11

I understand that many people have an atavistic revulsion about dynamic pricing but it seems when probed this is less about unfairness and more about needing to think about it. Computers will think about it for you.

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8/21/2024

Patrick McKenzie@patio11• about 1 year ago

Replying to @patio11

Sort of like how there are dynamic auctions for your attention every time you open a web page with an ad on it. You don’t have to even be aware that is a thing in the world, much less actively express preferences for the auction.

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8/21/2024