TY - JOUR
T1 - Strategic behavior and social outcomes in a bottleneck queue
T2 - Experimental evidence
AU - Breinbjerg, Jesper Breinbjerg
AU - Sebald, Alexander Christopher
AU - Østerdal, Lars Peter
PY - 2016/9/1
Y1 - 2016/9/1
N2 - We theoretically and experimentally study the differential incentive effects of three well known queue disciplines in a strategic environment in which a bottleneck facility opens and impatient players decide when to arrive. For a class of three-player games, we derive equilibrium arrivals under the first-in-first-out (FIFO), last-in-first-out (LIFO), and service-in-random-order (SIRO) queue disciplines and compare these predictions to outcomes from a laboratory experiment. In line with our theoretical predictions, we find that people arrive with greater dispersion when participating under the LIFO discipline, whereas they tend to arrive immediately under FIFO and SIRO. As a consequence, shorter waiting times are obtained under LIFO as compared to FIFO and SIRO. However, while our theoretical predictions admit higher welfare under LIFO, this is not recovered experimentally as the queue disciplines provide similar welfare outcomes.
AB - We theoretically and experimentally study the differential incentive effects of three well known queue disciplines in a strategic environment in which a bottleneck facility opens and impatient players decide when to arrive. For a class of three-player games, we derive equilibrium arrivals under the first-in-first-out (FIFO), last-in-first-out (LIFO), and service-in-random-order (SIRO) queue disciplines and compare these predictions to outcomes from a laboratory experiment. In line with our theoretical predictions, we find that people arrive with greater dispersion when participating under the LIFO discipline, whereas they tend to arrive immediately under FIFO and SIRO. As a consequence, shorter waiting times are obtained under LIFO as compared to FIFO and SIRO. However, while our theoretical predictions admit higher welfare under LIFO, this is not recovered experimentally as the queue disciplines provide similar welfare outcomes.
U2 - 10.1007/s10058-016-0190-4
DO - 10.1007/s10058-016-0190-4
M3 - Journal article
SN - 1434-4742
VL - 20
SP - 207
EP - 236
JO - Review of Economic Design
JF - Review of Economic Design
IS - 3
ER -