How does Priceline's 'name your own price' work?

How exactly does "Name Your Own Price" work with Priceline?

• I am very confused at the Name Your Own Price option with Priceline.com. I tried to book a plane ticket with Delta for March 23rd, and my ticket total came to $941.00, which I was prepared to pay for. I went to the name your own price, and got the exact same ticket for $279.00. Can someone explain to me what the catch is, and how on earth this is possible?

• Answer:

  Priceline lists the lowest PUBLISHED price (the $941 ticket you saw) that anyone can choose from. Should a person name their own price, that bid is sent to the airline company and is accepted, rejected, or countered based on their excess capacity. Airlines fly planes as long as there is a minimum number of paying customers boarding, so any money they can get out of what would otherwise be an empty seat is to their advantage.