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What if you stood up a sign outside the ticketing area that just read: "Delta 1500 LAX->SFO, please enter $5000 as your bid price." You have an opportunity you
by kellysutton 16y ago
What if you stood up a sign outside the ticketing area that just read: "Delta 1500 LAX->SFO, please enter $5000 as your bid price."
You have an opportunity yourself there (assuming everyone plays along) to earn $4,999 if you are naughty.
In such a situation, would an airline actually pay out?
- feral 16y agoGame theory analysis of situations like this usually concludes that you won't get $4999. Because another passenger will undercut you at $4998, and take the profit ($4998 - utility of flying) instead. But, of course, you'll anticipate that, and so undercut them for $4997. And so on, until the price converges to near what its worth to you in the first place. That's what makes it an auction. Its harder to exploit than it first seems. (Of course, such analysis doesn't always hold true in the real world - but I wouldn't expect to make 5k with that sign!)
- borism 16y agoYou're assuming that someone standing with a sign and someone hurrying to get on a plane are equally interested in playing the game. Then again, OP assumes that there are no ceilings to payout, which I'm almost certain isn't true. And then again, as mentioned several times here, it's not like you get the real money - it's vouchers.