Two booksellers using Amazon's algorithmic pricing to ensure they were generating marginally more revenue than their main competitor ended up pushing the price of a book on evolutionary biology -- Peter Lawrence's The Making of a Fly -- to $23,698,655.93.
The book, which was published in 1992, is out of print but is commonly used as a reference text by fly experts. A post doc student working in Michael Eisen's lab at UC Berkeley first discovered the pricing glitch when looking to buy a copy. As documented on Eisen's blog, it was discovered that Amazon had 17 copies for sale -- 15 used from $35.54 and two new from $1,730,045.91 (one from seller profnath at that price and a second from bordeebook at $2,198,177.95).
This was assumed to be a mistake, but when Eisen returned to the page the next day, he noticed the price had gone up, with both copies on offer for around $2.8 million. By the end of the day, profnath had raised its price again to $3,536,674.57. He worked out that once a day, profnath set its price to be 0.9983 times the price of the copy offered by bordeebook (keen to undercut its competitor), meanwhile the prices of bordeebook were rising at 1.270589 times the price offered by profnath.
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