Saturday, May 24, 2014

Ely and Baliga and Northwestern's purple pricing has an article on The game theorists who dreamed up Purple Pricing for Northwestern about Jeff Ely and Sandeep Baliga, who convinced Northwestern U's athletic department to sell tickets by a descending auction. (I blogged about that here.)

Now the idea is for sale:
The duo is marketing their idea — renamed “Ticker” — through their Evanston-based company, Cheap Talk LLC, to other universities, professional teams and even concert venues that may be interested in hiring them as price consultants.
But unless ticket vendors know more about which customers are buying at what prices, it will be a hard sell, says Nels Popp, an assistant professor in the sports administration program at the University of North Carolina who researches team and school ticket sales. Bargain-hunters, for instance, may be less likely to become repeat customers. “They're there, but they're not who you're going to build your (ticket sales) base around,” he says. “That might be a challenge.”
Mr. Ely concedes Purple Pricing has been a tough sell. “But if we can have a few successes in different contexts under our belt, that would be huge.”

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