A system, called Ticker, has boosted revenues through reverse auctions while gaining support from fans and the press.
At Northwestern University, two economics professors, Sandeep Baliga and Jeff Ely, launched Ticker in early 2013. They auctioned off American football tickets to the university's championship. There was a match where sales were up by 162%.
Their slogan, "Fan Friendly Ticket Pricing" also describes the essence of their system. Headlines and articles like this appeared in the press:
Pay Less for Sporting Event Tickets—After You’ve Already Bought Them. You’ve probably never heard of “Purple Pricing.” But you’ll like that it gives you a chance to snag sports tickets below face value, without resorting to haggling, scalping, or timing the market right. (Time magazine)
The goal for the team is to keep ticket-holders from reselling seats for huge profits, and it worked at [Northwestern University]: The school saw a 162 percent increase in ticket revenue for its 2013 football game against Ohio State compared with the game's original face values. The method worked for other NU football and basketball games, too. [...] Mr. Baliga, however, points to a 67 percent revenue increase over original prices for tickets sold to the NU-Michigan game last fall [...] (Chicago Business)
[...] current approach of guessing demand for each game before setting prices isn’t the best way to go – sell at too high a price, and the game won’t sell out; sell at too low a price, and the school leaves money on the table. (CBS)
More articles are available on Ticker.
How did we find them?
When developing the basics of ReverseTicket, we conducted market research to see if the system we have created was being used elsewhere. That's how we found Ticker. We tried to reach Professor Baliga and his associates, but unfortunately, we could not. We rely on articles published in the press.
They have proven the viability of a reverse auction. This confirms that we are on the right track and will make ticketing fairer for everyone.
What's more, ReverseTicket is different from Ticker. We provide even more transparency. It's predictable how price drops over time.