Comment by eightysixfour

Let's make this easy. There's 1000 people who want to go to a concert and there are 100 tickets. Of the 1000 people who want to go, every 100 of them is willing to spend $10 more, starting at $100. So the first 100 will pay $100, the second will pay $110, etc.

If the concert is priced at $120 there are 200 people completely priced out, but there are 800 people who will pay. The tickets are released, they all scramble for the tickets, some from each of the 8 cohorts willing to pay the price are able to attend.

If the concert is priced the way you described it, all 100 tickets would be bought before the price ever goes below $200.

There is simply more demand than supply. The only way to fairly distribute that, if that is what you want to do, is by the lottery-esque system we have now.