throwaway21233

I don't see it really as profit maximising, just allocating it first to the people who want it the most. Like they are willing to pay scalpers.

You can get it at the lower price, you just have to wait. The same happens with loads of digital devices. On release day the price is higher.

If it helps you can separate it and have the first a 'ticket' in line to buy the product for the regular price. You just reserve your spot with the auction. The queue price just drops over time.

I don't get why companies don't take advantage of the demand.

For example: Start the bidding at BASE_PRICE (BP) + 2400. Then reduce the price by $1 every 3mins over the course of 5 days. Until the BP is met and then just carry on queuing.

You could buy it early if you want it that much or just wait an extra couple of days and end up in the queue at the BP.

I don't know if it would create pressure on that second it ticks over to the BP, so then its BP+1 - well I guess the nash equilibrium would be pushed up.