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Bribery and Favoritism in Queuing Models of Rationed Resource Allocation

Author

Listed:
  • Amitrajeet A. Batabyal

    (Rochester Institute of Technology, aabgsh@rit.edu)

  • Hamid Beladi

    (University of Texas in San Antonio, Hamid.Beladi@utsa.edu)

Abstract

Queuing mechanisms are commonly used in developing countries and in transition economies to allocate goods characterized by excess demand to citizens. Bribery and favoritism frequently accompany the use of such queuing mechanisms. Therefore, we first analyze a queuing model of resource allocation with bribery. Specifically, we determine the expected wait time of a citizen from the time he arrives to queue and the time he obtains the rationed good, the likelihood that a citizen illegally obtains n units of the rationed good, and the expected time a citizen spends being served by the public or private official. Next, we analyze a queuing model of resource allocation with favoritism. Using this model, we ascertain the mean arrival rate of the favored citizen and the likelihood that an ordinary citizen is bumped n times to provide the rationed good immediately to the favored citizen.

Suggested Citation

  • Amitrajeet A. Batabyal & Hamid Beladi, 2008. "Bribery and Favoritism in Queuing Models of Rationed Resource Allocation," Journal of Theoretical Politics, , vol. 20(3), pages 329-338, July.
    • Handle: RePEc:sae:jothpo:v:20:y:2008:i:3:p:329-338
    DOI: 10.1177/0951629808090138
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    References listed on IDEAS

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    1. Geof Wood, 1999. "Private Provision after Public Neglect: Bending Irrigation Markets in North Bihar," Development and Change, International Institute of Social Studies, vol. 30(4), pages 775-794, October.
    2. Bennett, John, 1991. "Repressed inflation, queuing and the resale of goods in a centrally planned economy," European Economic Review, Elsevier, vol. 35(1), pages 49-60, January.
    3. Praveen Kulshreshtha, 2003. "Rationing by Waiting, Opportunity Costs of Waiting and Bribery," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 38(1), pages 59-75, January.
    4. Maxim Boycko, 1992. "When Higher Incomes Reduce Welfare: Queues, Labor Supply, and Macro Equilibrium in Socialist Economies," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(3), pages 907-920.
    5. Amitrajeet Batabyal, 2005. "On bribing and balking in a simple queuing model of resource allocation," Economics Bulletin, AccessEcon, vol. 16(1), pages 1-10.
    6. Amitrajeet Batabyal & Peter Nijkamp, 2004. "Favoritism in the Public Provision of Goods in Developing Countries," Economics Bulletin, AccessEcon, vol. 15(1), pages 1-10.
    7. Kulshreshtha, Praveen, 2007. "An efficiency and welfare classification of rationing by waiting in the presence of bribery," Journal of Development Economics, Elsevier, vol. 83(2), pages 530-548, July.
    8. von Furstenberg, George M & Spangenberg, Nicholas O, 1996. "The Political Temptations of Rationing by Insiders," Public Choice, Springer, vol. 88(1-2), pages 69-81, July.
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    Cited by:

    1. Quoc-Anh Do & Kieu-Trang Nguyen & Anh N. Tran, 2017. "One Mandarin Benefits the Whole Clan: Hometown Favoritism in an Authoritarian Regime," American Economic Journal: Applied Economics, American Economic Association, vol. 9(4), pages 1-29, October.
    2. repec:spo:wpecon:info:hdl:2441/6ggbvnr6munghes9ocpp7f52o is not listed on IDEAS
    3. Quoc-Anh Do & Kieu-Trang Nguyen & Anh N. Tran, 2017. "One Mandarin Benefits the Whole Clan: Hometown Favoritism in an Authoritarian Regime," American Economic Journal: Applied Economics, American Economic Association, vol. 9(4), pages 1-29, October.
    4. repec:hal:spmain:info:hdl:2441/6ggbvnr6munghes9ocpp7f52o is not listed on IDEAS
    5. repec:hal:spmain:info:hdl:2441/sj22pruud8a7b8cdlvom4sbtp is not listed on IDEAS
    6. repec:hal:spmain:info:hdl:2441/2ck6as9uec97fpod83b2hmfsvt is not listed on IDEAS
    7. repec:hal:wpspec:info:hdl:2441/6ggbvnr6munghes9ocpp7f52o is not listed on IDEAS

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