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I assume you pay your bid amount immediately and then get refunded later, because otherwise you could just bid $10 zillion, get the best seats, and only end up
by evunveot 11y ago
I assume you pay your bid amount immediately and then get refunded later, because otherwise you could just bid $10 zillion, get the best seats, and only end up paying whatever everybody else pays.
How is the price determined at any given moment? Do they just manually adjust it down over time until all the seats are filled, or is there an algorithm?
- brianbreslin 11y agoThere is an algorithm. The initial bidding sets the starting price. Then the price drops over time until it sells out. you could bid $1M to set the price that high, but then you have to float $1M on your credit card and hope the price drops to $200 so you get $999,800 back in a refund.
- esturk 11y agoMay I ask if the algorithm takes into account the expected amount of revenue to be generated by the event? If someone really did bid a million, which goes toward covering some parts of needed budget, there would be less incentive to decrease the price as quickly.
- brianbreslin 11y agohaha. we asked if they just stop bidding and sell all the arena to the one ticket holder. apparently that hasn't been the case yet.
- shalmanese 11y agoI believe the parent's objection was that different seats in a stadium have different value and this is not accounted for in the auction mechanism. I don't know how the university accounts for this but it does add a wrinkle to the auction system.
- brianbreslin 11y agothey split it by sections, not one universal fee. So you're bidding on "left upper section" and that encourages you to set your max fair price and get in early to pick the best seat in that area.