4 ms·
Yes, 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 mini
by esturk 11y ago
Yes, 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.