The reasoning here applies only to monopoly pricing, but airline transportation is sometimes a competitive situation. In that case, the reverse auction can impose some price discrimination but cannot erode the total consumer surplus.
Of course, I am a Delta hub prisoner so my flights are in fact priced as monopoly rents. What I wouldn't give for some competition.
Of course, I am a Delta hub prisoner so my flights are in fact priced as monopoly rents. What I wouldn't give for some competition.