Suppose the frequent-flyer program raised the cost of high-yield spill twofold because business customers who are denied boarding now take their business to other carriers for several future trips, not just the current one. Reanalyze the overbooking decision in Figure under these circumstances. Will overbooking of business-class service increase ordecrease?

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How the Overbooking Decision Minimizes the Summed Cost of Spoilage and Spill Total costS business Oversales costS business Total costsnonbusiness Oversales costs nonbusiness Spoilage 92 93 94. 95 96 97 98 100 Expected load factor MB spoilage reduction MCbusiness oversales MCnon business oversalkes 94 97 Expected load factor