So here would be my solution:
First checked bag - free
Second checked bag - $25.00
Personal item that fits underseat or overhead - free. A personal item is a purse, laptop bag, tote bag, or small back pack.
Overhead bag - $20.00. An overhead bag is any bag taken on board flight that is not defined as a personal item.
Payment for overhead should be done at check in which will then allow the computer system to print a boarding pass showing - OVERHEAD OK.
Overhead space gratis for all AA elites, 1W elites, and AA affinity credit card holders.