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Incentive Mechanisms for Priority Queuing Problems

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  • Robert J. Dolan
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    Abstract

    We consider the development of an incentive mechanism to induce users of a service facility to reveal the parameters the system administrator requires to determine the optimal sequence of service to queued users. We first consider using the taxation procedure recently suggested for public goods, and then develop a more efficient mechanism based on marginal delay costs. We prove that setting the priority price for service equal to the marginal delay cost imposed on others structures a situation such that a user maximizes his individual welfare revealing his true delay cost.

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    Bibliographic Info

    Article provided by The RAND Corporation in its journal Bell Journal of Economics.

    Volume (Year): 9 (1978)
    Issue (Month): 2 (Autumn)
    Pages: 421-436

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    Handle: RePEc:rje:bellje:v:9:y:1978:i:autumn:p:421-436

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    Cited by:
    1. Conan Mukherjee, 2013. "Weak group strategy-proof and queue-efficient mechanisms for the queueing problem with multiple machines," International Journal of Game Theory, Springer, vol. 42(1), pages 131-163, February.
    2. Chun, Youngsub & Mitra, Manipushpak, 2014. "Subgroup additivity in the queueing problem," European Journal of Operational Research, Elsevier, vol. 238(1), pages 281-289.
    3. Jens L. Hougaard & Juan D. Moreno-Ternero & Lars P. Osterdal, 2014. "Assigning agents to a line," Working Papers 14.01, Universidad Pablo de Olavide, Department of Economics.
    4. Rene van den Brink & Youngsub Chun & Yuan Ju, 2014. "Auctioning and Selling Positions: A Non-cooperative Approach to Queuing Conflicts," Tinbergen Institute Discussion Papers 14-016/II, Tinbergen Institute.

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