[panda88888]

To be honest in that situation overselling would net airlines even more money. That's why airlines oversell.

IMO a better system would be a more market-based solution.

Disallow involuntary bumping except under exceptional circumstances, and require airlines to up theirs compensation until enough people voluntarily bump themselves. Airlines would still oversell but at lower % because the cost is now higher. And people who get bumped are at least given satisfactory compensations.