Landlords today often use computer programs (algorithms) to help decide how much rent to charge. An algorithm is a set of rules or a software tool that looks at various factors (like apartment size, location, demand, time of year) and then recommends a rent price.
The software gathers data from nearby similar apartments and shared pricing systems to adjust its recommendations in real time.
“Collusion” is when businesses secretly cooperate instead of competing, usually to keep prices high. With algorithms, even without explicit coordination, similar software can push prices upward.
Imagine all gas stations using the same pricing app. When one lowers its price, the others do too – resulting in uniformly high prices. This mirrors what happens in algorithmic rent pricing.