How Does This Work? New York Moves to Regulate Prices Set by Algorithms

Have you ever searched for a flight, decided to sleep on it, and woken up to find the price had jumped overnight?

Most people assume that happens because demand increased. More people want the seat, so the price goes up. That is how markets work. Prices respond to conditions. That is a principle as old as commerce itself.

But what if the price changed not because more people wanted the seat, but because an algorithm determined that you personally were willing to pay more for it? What if the company already knew, based on your browsing history, your past purchases, the device you were using, and dozens of other data points, that you were unlikely to shop elsewhere?