Please consider some of my earlier posts on this thread from this weekend explaining Disney’s possible plans and how it adversely impacts you, the consumer. Effectively, Disney wants to collect and cross-reference a ton of information about you, including financial and behavioral information, to identify your “buyer’s reserve price” and make sure you are charged exactly that.
Unless you are a student of business or deal with auctions on a regular basis, you might be unfamiliar with the concept of a “reserve price”. In essence, a “seller’s reserve price” is the minimum a seller would be willing to sell an item for. If you’ve ever bid on eBay, you might have seen this as a “reserve price”. Less familiar is the idea of a “buyer’s reserve price”; the most a buyer would be willing to pay for something.
Consider the following auction example.
I’m selling an art painting worth millions. I know there are several bidders in the room interested but I don’t know how much they’d be willing to spend. In this case, the painting would go for only one bid above what the second highest bidder (called the underbidder) would be willing to pay. To many, the winning bid could be reasonably considered “fair market value”.
Now let’s say I am the seller and through a common acquaintance, I was able to find out what the high bidder’s reserve price was. I could then plant someone in the auction room and make sure they forced the bid up to that buyer’s reserve price. Great for me, the seller. Very bad for the buyer.
By collecting vast amounts of financial and behavioral data, Disney is trying to determine your buyer’s reserve price. Using a simplistic example, if they determined you were willing to pay $120 for a one-day ticket but everyone else was willing to pay only $100, they could raise ticket prices to $120 and then offer everyone except you a $20 off coupon.
What we’ve seen on these threads is a tendency for Big Business advocates to view this as “good”; the free marketplace in action.
I tend to view this as an unfair business practice, like knowing the buyer’s reserve price in the auction example I described above.
If Disney wants to find out my buyer’s reserve price, then perhaps they should disclose their seller’s reserve price. What’s the minimum they would be willing to sell me a ticket for?
Somehow, I don’t think they would be willing to do that.