Bidding strategy for Entertainment Ticket Auctions

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!