NAME-YOUR-OWN-PRICE MODELS FOR SEAT UPGRADES:

In this paper I research the Name-Your-Own-Price mechanism for the purpose of auctioning off business and first class seats. We use the realize case of American Airlines to test our hypotheses with regard to effects on prices, passenger quantity and revenues. We find that the NYOP mechanism negatively affects business fares, but positively affects passenger quantities and revenues, which is in accordance with our expectations.