The Algorithm Running Up French Fry Prices
The video explains that the high price of french fries is not due to inflation but to an alleged cartel formed by four major frozen potato companies: Lamb Weston, McCain Foods, Jr Simplot, and Cavendish Farms. These companies control 97% of the global frozen potato market. Instead of direct communication, they use a third-party program called "Potato Track" to share sensitive data and receive pricing recommendations, leading to coordinated price increases. This practice, known as algorithmic price-fixing, is also happening in other industries like housing (with a program called "RealPage"), meat, sugar, ride-sharing, airlines, hotels, and insurance, potentially leading to higher prices for consumers across various sectors.
Key Vocabulary
Used to indicate that something can happen at any point or on any occasion, emphasizing flexibility or a lack of restriction on when an action can occur.
Examples:
- You can call me anytime if you have questions about the project.
- The gym is open anytime, so you can work out whenever it suits your schedule.
- She's always ready for an adventure, so you can suggest a trip anytime.
To sell goods or services at a lower price than a competitor, often with the intention of gaining a larger share of the market or driving competitors out of business.
Examples:
- The new store tried to undercut existing businesses by offering significant discounts.
- If we lower our prices too much, we risk undercutting our own profit margins.
- Their strategy was to undercut the competition and then raise prices once they had a monopoly.
An exclamation used to call attention to something that has just been done, presented, or discovered, often implying that it is a simple or impressive result.
Examples:
- Mix these ingredients together, bake for thirty minutes, and voila, you have a delicious cake.
- He connected the last wire, pressed the button, and voila, the machine sprang to life.
- She pulled the rabbit from the hat, and voila, the audience erupted in applause.
To criticize or mock someone or something, often in a direct or dismissive manner.
Examples:
- The comedian spent half his set dunking on popular reality television shows.
- He was constantly dunking on his brother's fashion choices, much to his brother's annoyance.
- The article wasn't just reporting; it was outright dunking on the new policy.
Stated as a fact but without proof; accused but not proven.
Examples:
- The alleged thief was apprehended, but the police are still gathering evidence.
- The company is facing a lawsuit over alleged safety violations.
- An alleged sighting of the rare bird caused a stir among ornithologists.
Determined to do something, especially something that is risky, harmful, or extreme.
Examples:
- He was hellbent on finishing the marathon, despite his injury.
- The team was hellbent on winning the championship, training tirelessly every day.
- She was hellbent on proving her theory, even if it meant working through the night.
Too expensive for the value or quality offered.
Examples:
- Many tourists found the souvenirs in the city center to be significantly overpriced.
- I decided not to buy the concert tickets because they felt overpriced for the seating location.
- Despite its reputation, critics often argue that the restaurant's menu is overpriced.
An association of manufacturers or suppliers that aims to maintain prices at a high level and restrict competition.
Examples:
- The international drug cartel controlled a significant portion of the illicit trade.
- Historically, some oil-producing nations have formed a cartel to influence global prices.
- The government launched an investigation into the alleged cartel activity in the construction industry.
Without the help of anyone else; by one's own efforts.
Examples:
- She singlehandedly organized the entire charity event, from fundraising to logistics.
- He singlehandedly built the cabin in the woods, learning all the necessary skills along the way.
- The small startup managed to disrupt the industry singlehandedly with its innovative product.
A form of government in which absolute power is exercised by a dictator.
Examples:
- The country transitioned from a democracy to a dictatorship after the military coup.
- Life under the dictatorship was marked by strict censorship and limited personal freedoms.
- Historians studied the rise and fall of several dictatorships throughout the 20th century.
Increased very rapidly and to a very high level.
Examples:
- The demand for ergonomic office chairs skyrocketed during the remote work trend.
- After the positive review, sales of the new smartphone skyrocketed overnight.
- Housing prices in the area have skyrocketed, making it difficult for new buyers.
An ambiguity or inadequacy in a system, law, or contract that can be exploited to avoid or circumvent it.
Examples:
- He found a legal loophole that allowed him to avoid paying a certain tax.
- The company exploited a loophole in the regulations to gain an unfair advantage.
- Lawyers are often tasked with identifying and closing loopholes in contracts.
Cooperating in a secret or unlawful way in order to deceive or cheat others.
Examples:
- The two rival companies were accused of colluding to fix prices in the market.
- Investigators suspected the politicians were colluding with organized crime figures.
- There was no evidence to suggest that the athletes were colluding to manipulate the outcome of the game.
To begin to move more quickly or to happen more quickly.
Examples:
- The car began to accelerate as it entered the highway.
- Technological advancements continue to accelerate the pace of change in our society.
- The government implemented policies designed to accelerate economic growth.
Processed to remove impurities or undesirable elements; made more precise or elegant.
Examples:
- The company sells highly refined sugar for baking and confectionery.
- Through years of practice, the artist's technique became increasingly refined.
- The scientist refined his hypothesis based on the new experimental data.
Agreed to receive or regularly receive a publication, service, or product.
Examples:
- She subscribed to several online newspapers to stay informed about current events.
- He subscribed to the streaming service to watch his favorite shows.
- Many people have subscribed to the newsletter to get updates on new products.
A thick, sweet, sticky liquid made by dissolving sugar in boiling water, often flavored or concentrated from fruit juices or plant saps.
Examples:
- She poured maple syrup over her pancakes for breakfast.
- The cough syrup helped to soothe his sore throat.
- The recipe called for a tablespoon of golden syrup to add sweetness and moisture.
Used to convey that something is claimed to be the case, although there is no proof.
Examples:
- The treasure was allegedly hidden in a secret cave for centuries.
- He was allegedly seen leaving the building shortly before the incident.
- The new discovery allegedly proves the existence of an ancient civilization.
Relating to Switzerland or its people.
Examples:
- She bought a beautiful Swiss watch as a souvenir from her trip.
- The Swiss Alps are a popular destination for skiing and hiking.
- He enjoyed a traditional Swiss fondue for dinner.
In a way that is related to commerce or business; with a view to making a profit.
Examples:
- The artist's work became commercially successful after it was featured in a major exhibition.
- The company is exploring how to commercially develop its new technology.
- The film was produced commercially, aiming for a wide audience and box office success.