Study links Amazon's algorithmic pricing with erratic, inflated costs for school districts

When it comes to convenience, it’s hard to beat Amazon. And that rationale isn’t limited to consumers: Many local districts shopping for supplies with public funds apply the same logic. But the Institute for Local Self-Reliance (ILSR) published a study earlier this month (via The American Prospect) that illustrates the cost of that bargain. It suggests that Amazon’s “dynamic pricing” has led many schools and other localities to overpay for supplies.

Public schools and local governments have historically bought supplies by soliciting competitive bids from local suppliers. Those vendors then respond with fixed price lists, delivery timelines and other terms. This competition — all out in the open, part of the public record — encourages low prices and transparency.

On the surface, ordering from Amazon appears to offer competition, too. After all, the platform includes third-party vendors fighting for your dollars ...