Originally Posted by
2078 Miler
You have me intrigued. If the minimum bid is always accepted, it is essentially an LMU and I assume some seats get no bid. The LH model is a single sealed bid auction. For maximum economic efficiency, I would want a no-minimum, no maximum, all empty J seats are sold arrangement.
Won't happen.
There is an incremental cost of moving you from Y to J (they may have to cater an extra meal, you will likely consume more beverages, etc.), which would set some floor on it, though it would likely be around $50.
However, the bigger issue is that if you know you can always buy Tango and bid $50 and win, you'll stop buying Flex/PY+eUp or J. And this is what would result in a much higher floor.
They could do interesting things like not ranking bid. Who should get the seat? Latitude bidding $500 or Tango bidding $501? Though I'm not convinced they're clever enough to implement this in a sensible manner.