How algorithms shape our world

1. The vicissitudes meaning the quality or form of being transformed,

Calcify meaning to make inflexible, pacify meaning to bring back to a state of peace.

2. The world has been modeled for and organized for algorithm as well as the equity markets. Complicated computer programs are used to determine espionage strategies, stock prices, movies and architecture. Close to 70% of trades are managed by quants, it may however not always be right and fail like the flash crash.
3. Algorithms are applied in the determination of pricing, for instance “The Making of a Fly: The Genetics of Animal Design” that was purchased for close to 24 million not long ago in Amazon.com. Conversely nobody was involved in any transaction similarly to Wall Street. Currently the book is going for approximately $300.

60% of the selected movies are determined using algorithms (Slavin). This is nevertheless terrifying considering that a big percentage of what we watch is determined by algorithm that is not that easy to foresee. We will not be in a position to know when the algorithm crash as noted in the flash crash, this is attributed to poor understanding of algorithm. Algorithm that is applied in Wall Street is keen on super-speed.

4. Organizations are able to use algorithms so as to formulate strategies that the company will require in its operations. The company may similarly use it in the setting of prices in the stock market. Companies that deal in movies may be applied in getting to know which movies the clients would be interested in watching next, NetFlix has applied algorithms to acquire which movies that people may have an interest in watching next. Algorithm may be used in the architecture where a big aspect like the stock market is divided into smaller portions for better understanding.

References

Slavin K. How algorithm shape our world, 2011. Accessed from http://www.youtube.com/watch?v=TDaFwnOiKVE