ou have three tickets to a Celtics game on a night that you are going to be out of town (so the value of unsold tickets is zero to you). There are only four possible buyers of a Celtics ticket. The table below lists the respective reservation prices of these four possible buyers: Customer Reservation Price 1 $25 2 $35 3 $50 4 $60 a) How much revenue can you generate using the English auction mechanism from the sale of the first ticket? [Bids ca
You have three tickets to a Celtics game on a night that you are going to be out of town (so the value of unsold tickets is zero to you). There are only four possible buyers of a Celtics ticket. The table below lists the respective reservation prices of these four possible buyers:
Customer Reservation Price
1 $25
2 $35
3 $50
4 $60
a) How much revenue can you generate using the English auction mechanism from the sale of the first ticket? [Bids can be made in increments of $1.00]
b) How much revenue can you generate using the English auction mechanism from the sale of the second ticket? [Bids can be made in increments of $1.00]
c) How much revenue can you generate using the English auction mechanism from the sale of the third ticket? [Bids can be made in increments of $1.00]
d) How much total revenue can you generate using the English auction mechanism from the sale of the three tickets?
e) How much revenue can you generate if you charge a single price of $25 for the three tickets?
f) How much revenue can you generate if you charge a single price of $35 for the three tickets?
g) How much revenue can you generate if you charge a single price of $50 for the three tickets?
h) How much revenue can you generate if you charge a single price of $60 for the three tickets?
i) Which of the following prices fetches you the highest revenue if you charge a single price for the three tickets?
j) You can sell the tickets by using a single price for the tickets, or you can invite bids using an English auction to sell your tickets. Which pricing strategy should you choose?
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