Let’s give an example. A tourney has a 1K buy-in and a 100K guaranteed prize pool. So regardless of the number of players who buy in, the prizes will be 100K total.
First off, this doesn’t seem very realistic to me, if chips were real money the house would lose money if there were less than 100 players who bought in in this tourney. If there was only 1 player buying in, he’d automatically win 99K chips from the house. The concept of guaranteed prize pool with unlimited number of participants is pretty unrealistic to me, either you have a guaranteed prize pool with a fixed number of participants, or if participants are unlimited the prize pool isn’t the sum of the buy-ins of all participants (minus the rake in real life).
Second, the late registration is completely unfair to the players who register in time. Let’s say I register in time when there are 50 participants. But when the late registration is over, there are 200 participants. Then my odds are horrible, I basically paid 1K to gain an average of 1/200 of 100K! So the only way to play these tourneys is to wait until the last minute, and check there aren’t too many people for the odds to be positive. This encourages an obnoxious way to play.