Delta and the Game Theory of Overbooking Flights

Given the deep mess that United Airlines created for itself after a passenger was dragged off a full flight last week, Delta said it could increase the incentives for “voluntary denied boarding.” Agents will now be allowed to offer up to $2,000 to entice passengers to give up their seats, significantly more than the previous limit of $800. If that doesn’t work, the agents’ supervisors can authorize payments of almost $10,000.