1 Why do airline companies offer free upgrade to businessfirst class to economy passengers at the moment of departure What are the costs and benefits of this decision 2 Discuss the rationale underlying the airline decision to auction discount seats to third party vendors costs and benefits 3 Using the price and profitability numbers provided what would be the estimated probability of stock out have to be in order to make the decision not to reallocate the seat five days before departure Hint l

Answer rating: 100% (QA)

1 in this case each unfilled high paying seat make a marginal cost of 200 to company totalling 3000 ... View the full answer