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On overbooking, this is a solved problem: hold an auction where the max payoff is the risk in dollars X, distributed amongst Y passengers (the number of seats y
by rargulati 10y ago
On overbooking, this is a solved problem: hold an auction where the max payoff is the risk in dollars X, distributed amongst Y passengers (the number of seats you need to free up). Start at some low anchor point ("$300 to get off the plane") and increment up until you have takers. If the total value exceeds X, write it off - you messed up.
I believe other airlines implement this in some capacity.
- strictnein 10y agoUnited does too. They just stopped at $800 and then went the random route. They could have gone higher.
- FireBeyond 10y agoYeah, there's also video from just prior to this incident where multiple people say "We'll get off for $1500" and the purser literally laughs and says "Yeah, that's not going to happen. People are going to need to leave the plane or it won't take off."
- robbiemitchell 10y agoYes, but to be clear: it wasn't overbooked.