Imagine yourself a manager for a football team. You can use either a traditional system of pricing the season tickets (4-5 different price levels based on the location of the seats) or, use an auction and sell the tickets to the top 60,000 (assuming that this is the seat capacity) bidders. This a very popular team (Super Bowl Champions) and the games are always sold out with many more fans trying desperately to acquire tickets through scalpers.
Which pricing approach would you use and why? What would be the advantages and disadvantages of each method