3 ms·
This assumes static demand the entire time leading up to the event (concert, game, etc.) the ticket is for. In reality, demand usually peaks sometime right bef
by bduerst 11y ago
This assumes static demand the entire time leading up to the event (concert, game, etc.) the ticket is for.
In reality, demand usually peaks sometime right before the event, so you're still going to have a secondary market taking advantage of the price differential.
- brianbreslin 11y agoThis is designed to eliminate the value from the secondary market, transfer it to the school, and reduce the "risk" of buying too soon.
- esturk 11y agoYes, the demand may peak at t=0 and since the price may only fall, there will still be a secondary market. However, their revenue will be much smaller. The minimum price for each ticket will be higher do to the falling mechanism. The discrepancy between what the secondary market will make is then smaller.
- bduerst 11y agoIf demand peaks at t=0, the second market sellers are going to buy out the entire supply early where demand and price are the lowest, and then use economic hold up to inflate their prices even further. All you're doing with this system is guaranteeing that consumers who want to pay a lot of money early on are guaranteed to do so. Considering that this is an imperfect market and the second market sellers are more knowledgeable, average consumers are going to the ones paying out here, not the resellers.