Originally Posted by
SparseFlyer
Because if you get to revise your bids, you are giving away information and losing the advantage from asymmetry.
Better chance to get max value if it's a one shot deal because you are more likely to bid as much as you're willing to pay for it on the first shot (again, this is assuming information asymmetry).
It will also give better drmand data to AC since it won't be skewed by bid fighting.
Well, revise upwards only... almost like open outcry... But agreed, this would not be the best option for the seller in this case because of the lack of consensus of the value of upgrade. A dutch auction would be hard to implement asynchronously, so I guess sealed bid it is.
Then how about this: Collect sealed bids at checkin time.
At flight close time, have the app SELL the upgrades at a price higher than lowest winning bid, LMU style... you know, pop up some promo on everyone's phone offering a live action "outcry" essentially. I guess then nobody would submit sealed bids then.... Well, nobody on this thread would. =P
Edit: Never mind; the cost of implementing the technology would far outweigh the incremental revenue.