He is the author who wrote this on his website:
Q. How can I get Neil Gaiman to make an appearance at my school/convention/event?
A. Contact Lisa Bransdorf at the Greater Talent Network. Tell her you want Neil to appear somewhere. Have her tell you how much it costs. Have her say it again in case you misheard it the first time. Tell her you could get Bill Clinton for that money. Have her tell you that you couldn’t even get ten minutes of Bill Clinton for that money but it’s true, he’s not cheap.On the other hand, I’m really busy, and I ought to be writing, so pricing appearances somewhere between ridiculously high and obscenely high helps to discourage most of the people who want me to come and talk to them.
He’s busy, for sure. Too busy to agree to every appearance request. And so he does need to discourage people who want him to come and talk to them. But does he have to use high prices to discourage them? He could always just decide how many appearances he is able to fit into his busy schedule and agree to that many, saying no to everybody else. No need for prices if he is just rationing his time.
But maybe he wants to make sure that his scarce time is allocated to the audiences that value it the most. That’s not greed, that’s efficiency. Then instead of rationing by saying no, he should hold an auction. He chooses the same number of appearances as in the rationing mechanism (just based on the cost of his time), but now those appearances go to the highest bidders.
But maybe his optimal quantity of appearances cannot be determined independently of demand. If the auction fetches a very high price then he knows that the marginal willingness to pay is much higher than his marginal opportunity cost and he should increase supply. As a result his marginal opportunity cost increases until it rises above willingness to pay and he stops there. Now he is even more busy. But that’s efficient. And the price is lower.
But opportunity cost is a slippery concept. Agreeing to additional appearances means lower prices. The lower price is therefore an opportunity cost of the marginal appearance. When Neil Gaiman takes this into account, equating his marginal opportunity costs to marginal willingness to pay means raising prices. Now that’s greedy. But on the other hand any way of increasing consumer surplus necessarily lowers Neil Gaiman’s profits, so its also (Pareto) efficient.

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May 19, 2010 at 6:49 am
rjh
The economic analysis is more complex than you show. Gaiman clearly indicates in following sections that he has a variety of alternatives to choose from, and that these interact. One huge one is that he must also have enough time to write his books. This interacts with public speaking, because both consume a fixed time resource.
A simple auction mechanism for speaking cannot provide optimization. The reward from the time investment in each book is spread over multiple years. Speaking to potentially book reading audiences enhances book sales, while speaking to other audiences might not. The value of the speaking decreases without the regular publication of high quality books. Neither of those factors are reflected in an auction mechanism.
The more realistic question of optimizing time allocation for the conflict between books and auctions also fails to capture his actual complete limits. He values different audiences differently. He donates speaking time to a variety of charities. He charges notably less for book reading audiences than for corporate event audiences. Capturing a portion of this, as well as the time conflicts for book writing, becomes a much more realistic tutorial example of typical business optimization problems.
May 19, 2010 at 11:53 am
Anshu
Whether greedy or not, what he’s written (and how he’s written it) makes him sound like a bit of a jerk with a heightened sense of entitlement.
May 23, 2010 at 10:42 pm
John
Gaiman needs money for Scientology.
Gaiman donated $35,000. to Scientology in November for their Super Powers center. He is listed in Scientology’s cornerstone newsletter.
Neil Gaiman just donated another $500,000.00 to Scientology in 2010 through his business partner Mary Gaiman who received a “Gold Humanitarian Award” for contributing to Ideal Org, MN.
Neil Gaiman and Mary Gaiman are business partners in The Blank Corporation and are funneling millions of dollars into Scientology.
The Gaiman family also derive a 6 million dollar income annually from G&G vitamins founded by the now deceased David Gaiman. G&G Vitamins has a monopoly to sell the purification rundown worldwide.
http://forums.whyweprotest.net/304-celebrity-news/neil-gaimans-scieno-front-65295/
June 29, 2010 at 9:03 am
Bidz Auctions
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