Getting paid for getting bumped

Getting paid for getting bumped

Airline passengers weren't always compensated for getting bumped from flights. Herbert Inhaber tells how it came about, and talks about the role of economist Julian Simon in the process, here in this Tech Central Station column: "Julian's Genius". Simon argued for the introduction of the market mechanism, rather than administrative rationing, "...when he found out that stewardesses were putting elderly people off overbooked planes, on the assumption that they would complain less than younger ones."

I learned about this from Pejmanesque.