Overbooking
(2017)
Journal Article
Ely, J. C., Garrett, D. F., & Hinnosaar, T. (2017). Overbooking. Journal of the European Economic Association, 15(6), 1258-1301. https://doi.org/10.1093/jeea/jvw025
We consider optimal pricing policies for airlines when passengers are uncertain at the time of ticketing of their eventual willingness to pay for air travel. Auctions at the time of departure efficiently allocate space and a profit maximizing airline... Read More about Overbooking.