Suggestion of fairer algorithm for community pricing

I noticed a few times recently that the community pricing almost got down to a lower point but just failed to do so. I think this works contrary to the spirit of CP. For example:

Production cost: $10,000

400 people bid $25 = $10,000

Next bracket down = $20, requiring 500 people bidding $20 to get the $10,000

But only 99 additional bidders before close, total 499 people bid $25 = £12,475

So Logos gets $2,475 above production cost, contrary to their objective of the CP program.

A better way would be for Logos to adjust the winning bids down to reach the production cost, i.e. the 499 people pay $10,000 / 499 = $20.04 (or $21 in round numbers) rather than $25. This seems more in line with the intention behind CP that the bidders simply cover costs.

Any thoughts?

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Comments

DMB

Well, to be indeed fair, the production costs are simply an estimate. I'd assume over time Logos wins some and looses some with the goal of delivering at cost.

I have noticed some times they do bring the cost calculation down (not in their favor), demonstrating their evenness in application.

Ted Hans

Have you also taken into account that some will not follow through with their bid when the resource is released? I am referring to the drop outs.

BriM

https://community.logos.com/discussion/comment/322484#Comment_322484

I realise that drop-outs need to be accounted for but I'd have expected them to be built into the initial estimate of production cost. E.G. 10% historically drop out so we need to make the cost 10% higher or whatever. That way the cost can be built in in a controlled way.

The quantisation that the current method gives isn't predictable so if Logos relied this over-recovery to meet the real cost they would sometimes be out of pocket.

I'm just saying that I think there must be a better algorithm that gives better fairness and certainty all round. I certainly don't want Logos to be out of pocket but it's been very frustrating to see a few titles last year almost get down to the next step but not quite reach it.

MJ. Smith

https://community.logos.com/discussion/comment/322519#Comment_322519

Given that I bid based on what the resource is worth to me and given that few companies even offer an opportunity to so directly influence the price, I'm satisfied with the current situation.

MJD

I think you know Logos is a for profit company, and they are entitled to make money!

Jack Caviness

https://community.logos.com/discussion/comment/322569#Comment_322569

I think you know Logos is a for profit company, and they are entitled to make money!

Very good point.

MJD, I am curious about your avatar. Where is that scene located? It looks very much like downtown Gibsonville, NC.

Keep Smiling 4 Jesus :)

Any thoughts?

Posted => Suggestion: Community Pricing Closure Bidding since would like Logos to adjust increment between community pricing bid amounts after enough Logos users have placed enough bids to cover estimated production costs. Personally have seen several community pricing items that had many additional bids, but not enough to reduce amount from initial closing. One resource had $ 10 increments; if increment had been changed to $ 5, closing amount would have been $ 5 less.

Keep Smiling [:)]

George Somsel

https://community.logos.com/discussion/comment/322684#Comment_322684

MJD, I am curious about your avatar. Where is that scene located? It looks very much like downtown Gibsonville, NC.

I was thinking it looked like downtown Kokomo, IN when I was a kid (some 30 years ago) [;)]

MJD

https://community.logos.com/discussion/comment/322684#Comment_322684

I think you know Logos is a for profit company, and they are entitled to make money!

Very good point.

MJD, I am curious about your avatar. Where is that scene located? It looks very much like downtown Gibsonville, NC.

This picture is of Downtown Northfield, Minnesota taken during the Jesse James bank robbery enactment last year.

Jack Caviness

https://community.logos.com/discussion/comment/322707#Comment_322707

This picture is of Downtown Northfield, Minnesota taken during the Jesse James bank robbery enactment last year.

Thank you for the info. Coupled with George's thought, this must be any-town, USA [8-|]