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Bidding strategy for Entertainment Ticket Auctions

Explore the nuances of bidding strategies in entertainment ticket auctions, highlighting the crucial role of the agent in maximizing profits. This analysis focuses on defining key terms such as ask price (Pa), bid price (Pb), and valuation (V), and how they interact to determine profit margins. The discussion includes concepts of satisfactory profit, time dependency, and strategies for setting ask prices. Also examined is the Mertacor strategy and its performance, offering insights into long-term profit-seeking approaches. Engage with us to refine your auction tactics and enhance profitability.

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Bidding strategy for Entertainment Ticket Auctions

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  1. Bidding strategy for Entertainment Ticket Auctions - Bhalchandra Agashe

  2. Differentiating Characteristics of the Entertainment CDA • Most Dynamic part of the TAC • Scope for making substantial profit

  3. How can the agent make profit ? Given Valuation = V Ask Price = Pa Bid Price = Pb Profit = Pa – V Profit = V – Pb

  4. Reference Profit (M) • In order to make a buy/sell decision, the current profit has to be compared with some projected figure. • How do we calculate this figure ?

  5. Satisfactory Profit • The profit that an agent is willing to settle for • Why is this different from the reference profit ? • Is it time dependent ? M(t) = M*w(t)

  6. Satisfactory Profit

  7. Seller’s strategy Current profit = Pa – V Satisfactory profit = M(t) When should the agent sell ? • Current profit >= satisfactory profit Otherwise ? - Revise the ask price

  8. Mertacor “A long term profit seeking strategy” • Two additional variables: • Target profit (Average profit to be made by the end) • Mean (Average profit made so far) Reference Profit = A*target + B*mean Profit = Pa – 2*V

  9. Mertacor • Satisfactory Profit: M(t) = M * w(t)

  10. How Mertacor fared at TAC 05 ?

  11. Wrap up Questions and/or Comments ? Thank you!

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