Auctioning and Selling Positions: A Non-cooperative Approach to Queuing Conflicts
AbstractComplementary to the axiomatic and mechanism design studies on queueing problems, this paper proposes a strategic bargaining approach to resolve queueing conflicts. Given a situation where players with different waiting costs have to form a queue in order to be served, they firstly compete with each other for a specific position in the queue. Then, the winner can decide to take up the position or sell it to the others. In the former case, the rest of the players will proceed to compete for the remaining positions in the same manner; whereas for the latter case the seller can propose a queue with corresponding payments to the others which can be accepted or rejected. Depending on which position players are going to compete for, the subgame perfect equilibrium outcome of the corresponding mechanism coincides with one of the two best known rules for queueing problems, t he maximal and the minimal transfer rules, while an efficient queue is always formed in equilibrium. The analysis discovers a striking relationship between pessimism and optimism in this type of decision making.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 14-016/II.
Date of creation: 28 Jan 2014
Date of revision:
Contact details of provider:
Web page: http://www.tinbergen.nl
Queueing problem; minimal transfer rule; maximal transfer rule; Shapley value; bidding mechanism; implementation; Queuing problem;
Find related papers by JEL classification:
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D60 - Microeconomics - - Welfare Economics - - - General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- MISHRA, Debasis & RANGARAJAN, Bharath, 2005.
"Cost sharing in a job scheduling problem,"
CORE Discussion Papers
2005053, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Chun, Youngsub, 2006. "A pessimistic approach to the queueing problem," Mathematical Social Sciences, Elsevier, vol. 51(2), pages 171-181, March.
- van den Nouweland, A. & Borm, P. & van Golstein, W. & Bruinderink, R.G. & Tijs, S., 1994.
"A Game Theoretic Approach to Problems in Telecommunication,"
9407, Tilburg - Center for Economic Research.
- A. van den Nouweland & P. Borm & W. van Golstein Brouwers & R. Groot Bruinderink & S. Tijs, 1996. "A Game Theoretic Approach to Problems in Telecommunication," Management Science, INFORMS, vol. 42(2), pages 294-303, February.
- Nouweland, C.G.A.M. van den & Borm, P.E.M. & Golstein Brouwers, W. van & Groot Bruinderink, R. & Tijs, S.H., 1996. "A game theoretic approach to problems in telecommunication," Open Access publications from Tilburg University urn:nbn:nl:ui:12-72854, Tilburg University.
- Yuan Ju & David Wettstein, 2009.
"Implementing cooperative solution concepts: a generalized bidding approach,"
Springer, vol. 39(2), pages 307-330, May.
- Ju, Y. & Wettstein, D., 2006. "Implementing Cooperative Solution Concepts: A Generalized Bidding Approach," Discussion Paper 2006-42, Tilburg University, Center for Economic Research.
- Yuan Ju & David Wettstein, 2006. "Implementing Cooperative Solution Concepts: a Generalized Bidding Approach," Keele Economics Research Papers KERP 2006/06, Centre for Economic Research, Keele University.
- René Brink & Youngsub Chun, 2012.
"Balanced consistency and balanced cost reduction for sequencing problems,"
Social Choice and Welfare,
Springer, vol. 38(3), pages 519-529, March.
- Rene van den Brink & Youngsub Chun, 2010. "Balanced Consistency and Balanced Cost Reduction for Sequencing Problems," Tinbergen Institute Discussion Papers 10-035/1, Tinbergen Institute.
- Maniquet, Francois, 2003.
"A characterization of the Shapley value in queueing problems,"
Journal of Economic Theory,
Elsevier, vol. 109(1), pages 90-103, March.
- Maniquet, F., 2000. "A Characterization of the Shapley Value in Queueing Problems," Papers 222, Notre-Dame de la Paix, Sciences Economiques et Sociales.
- MANIQUET, François, . "A characterization of the Shapley value in queueing problems," CORE Discussion Papers RP -1662, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- David Pérez-Castrillo & David Wettstein, .
"Bidding For The Surplus: A Non-Cooperative Approach To The Shapley Value,"
UFAE and IAE Working Papers
461.00, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Perez-Castrillo, David & Wettstein, David, 2001. "Bidding for the Surplus : A Non-cooperative Approach to the Shapley Value," Journal of Economic Theory, Elsevier, vol. 100(2), pages 274-294, October.
- Youngsub Chun, 2011. "Consistency and monotonicity in sequencing problems," International Journal of Game Theory, Springer, vol. 40(1), pages 29-41, February.
- Youngsub Chun, 2006. "No-envy in queueing problems," Economic Theory, Springer, vol. 29(1), pages 151-162, September.
- Jeroen Suijs, 1996. "On incentive compatibility and budget balancedness in public decision making," Review of Economic Design, Springer, vol. 2(1), pages 193-209, December.
- Robert J. Dolan, 1978. "Incentive Mechanisms for Priority Queuing Problems," Bell Journal of Economics, The RAND Corporation, vol. 9(2), pages 421-436, Autumn.
- Gul, Faruk, 1989. "Bargaining Foundations of Shapley Value," Econometrica, Econometric Society, vol. 57(1), pages 81-95, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Antoine Maartens (+31 626 - 160 892)).
If references are entirely missing, you can add them using this form.