This is an interesting pricing strategy. I hadn’t heard of it, but it’s apparently a variation on Google’s IPO approach.
Here is how it works: People bid what they are willing to pay for a ticket (or multiple tickets). After all the bids are in, the tickets are set to the price where they would sell out. So if our event in New York City has 100 tickets, the price would be set at the 100th highest bid (where a bid for seven tickets is considered seven bids).
Everyone pays the same price. This encourages people to bid the actual amount they are willing to pay rather than trying to guess the minimum bid that would get them a ticket.
