A (really) brief follow up on yesterday’s post on pricing Warrior basketball tickets. Checkout what our colleagues Sandeep Baliga and Jeff Ely are doing with the price of Northwestern basketball tickets! Here is how the describe on their Cheap Talk blog:
We are using a system which could roughly be described as a uniform price multi-unit Dutch Auction. In simpler terms we are setting an initial price and allowing prices to gradually fall until either the game sells out or we hit our target price. Thus we are implementing a form of dynamic pricing but unlike most systems used by other venues our prices are determined by demand not by some mysterious algorithm.
But here is the key feature of our pricing system: as prices fall, you are guaranteed to pay the lowest price you could have got by delaying your purchase. That is, regardless of what price is listed at the time you reserve your seat, the price you will actually pay is the final price.
What that means is that fans have no reason to wait around and watch the price changes and try to time their purchases to get the best possible deal. We take care of that for you.
This program is available for games against Ohio State (Feb 28) and Penn State (Mar 7).