Team Barca
Pros
 Customers might see first class “cheaper”
 Attract new customers
 No empty first class seats (more rev.)
 Take away consumer surplus
Cons
 Anger high-type customers
 Passengers will be uncertain if they get first class
 Lower revenues if there’s not enough bidders
 Lower revenues if everyone colludes (not likely)
 Will negate “price discrimination” that naturally occurs
with fixed ticket prices
Solution
 “Bidding!”
 Air New Zealand is Dominant
player
 Maximize Revenue and extract
consumer surplus
Happy Bidding
 Raymond Ye
 Angelo Dalisay
 Yang Zhang
 Ryan Lee