3 ms·
Here's an auction style that could be used to determine an optimal price, particularly for digital goods: 1. Each shopper specifies the max they're willing to
by pixelcort 12y ago
Here's an auction style that could be used to determine an optimal price, particularly for digital goods:
1. Each shopper specifies the max they're willing to pay for the item. Perhaps pre-auth this price on their credit card.
2. Merchant calculates - for every hypothetical price point - total revenue from all the shoppers who would we willing to pay at least that hypothetical price.
3. Whichever price causes the most revenue wins. All shoppers who are willing to pay at least this much are charged and receive the item.