Gan, Rowena; Gans, Noah; Tsoukalas, Gerry - 2021
Using airlines as a backdrop, we study optimal overbooking policies with endogenous customer demand, when customers … demand endogeneity leads to lower overbooking limits in this case. We then consider the broader problem of joint control of …. Numerical experiments that gauge magnitudes suggest that fixed-compensation policies that account for demand endogeneity can …