Texas-based RealPage’s YieldStar software helps landlords set prices for apartments across the U.S. With rents soaring, critics are concerned that the company’s proprietary algorithm is hurting competition.

“Never before have we seen these numbers,” said Jay Parsons, a vice president of RealPage, as conventiongoers wandered by. Apartment rents had recently shot up by as much as 14.5%, he said in a video touting the company’s services. Turning to his colleague, Parsons asked: What role had the software played?

“I think it’s driving it, quite honestly,” answered Andrew Bowen, another RealPage executive. “As a property manager, very few of us would be willing to actually raise rents double digits within a single month by doing it manually.”

The celebratory remarks were more than swagger. For years, RealPage has sold software that uses data analytics to suggest daily prices for open units. Property managers across the United States have gushed about how the company’s algorithm boosts profits.

“The beauty of YieldStar is that it pushes you to go places that you wouldn’t have gone if you weren’t using it,” said Kortney Balas, director of revenue management at JVM Realty, referring to RealPage’s software in a testimonial video on the company’s website.

  • Frank [he/him, he/him]
    ·
    2 years ago

    It's actually a thing that when people feel they have permission they'll do things they otherwise wouldn't. Like individually someone might be like "That's wrong, I won't do it" but if they're given and order or someone in authority tells them it's okay, or in this case if a robot says it's the optimum play, a lot of people will do it.

    Strong morals and ethics aren't really all that common, and even people who do have personal morals and ethics will fall victim to things like diffusion of responsibility. Like soldiers who say "Well I didn't kill anyone, I just worked in the motor pool. Yes, the tank I repaired blew up an orphanage, but I'm too far away from that action to feel that I am personally responsible for it, so I'll keep repairing tanks".

    https://en.wikipedia.org/wiki/Diffusion_of_responsibility#Moral_disengagement

    https://en.wikipedia.org/wiki/Automation_bias

    • SaniFlush [any, any]
      ·
      2 years ago

      And the great part is, not even being aware of this glitch lets you avoid falling for it! In fact, it makes you assume you already planned around it even when you haven’t!

      You are a flesh automaton animated by neurotransmitters!