No, I'm pretty sure it does actually happen. If there is a vacancy in first class, they want to fill it and often you can upgrade at the last minute for just a few hundred dollars more if you know how to ask and who. The first class section accounts for 40-50% of an airline's revenues on most flights. If it is not full, they are losing money. If you book first class ahead it can be very (!) expensive. In the tens of thousands of dollars for a long overseas flight to a coveted destination like Paris or London or Dubai, for instance.
I read about all this recently because I was curious about first class rates myself and Googled it. You can too. There is a ton of info out there on the subject.
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