Harness the power of Ticker to maximize revenue and attendance for sports, concerts, and theater.
To set prices, sellers need more information about the demand curve. One way to discover the demand curve is to progressively lower prices and track sales. This is the first key part of Ticker. This is a variation of the so-called Dutch auction that has been used for hundreds of years to sell flowers in the Netherlands. The potential problem with this approach is the same as with dynamic pricing: buyers will wait to buy till the price falls. Not only will this reduce revenue but also we will not learn the demand curve as buyers purchasing behavior does not reflect their true willingness to pay to attend the game.
The second key part of Ticker is the Ticker Pledge: fans are refunded the difference between the price they paid when they purchased and the final price of the event.
In a Dutch auction with a Ticker Pledge, if a ticket is worth $100 to a fan, he should not wait to buy till the price falls to $50. The auction may simply stop at $70 and he would miss going to the event. Had the fan just bought at $100, he would still only have paid $70 because of the Ticker Pledge.
The third part of Ticker is a bidding feature. We allow potential buyers for whom the current price is too high to record bids at lower prices.
Once buyers are honest, we can get a much more accurate picture of the demand curve as sales truly reflect willingness to pay.
To end Ticker, we employ an algorithm that takes into account:
• The objective of the venue in terms of revenue versus attendance.
• The target date set by the venue for Ticker to end. This could be at the date of the event of earlier,
whatever the venue decides.
• The data that is generated as we lower prices. Importantly, the rate at which sales are being made is a
key component in our strategy for lowering prices.
• The data generated by the bids.