What's interesting is how their recommendation algorithm plays into this. I've been digging into how these systems work (Netflix's specifically), and there's a pattern: the algorithm doesn't optimize for what you'd rate highest, it optimizes for what keeps you engaged.

Amazon does something similar but with pricing layered on top. Their rec system pushes higher-margin products, sellers notice which items get promoted, then they raise prices knowing Amazon will keep showing them anyway. So it's not just "algorithm adjusts prices" - it's more like the recommendation layer creates conditions where sellers can safely jack up prices without losing visibility.

Basically the algorithm creates artificial scarcity by only showing certain products, which gives sellers pricing power they wouldn't have otherwise.