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The Distributional Consequences of Paid-Priority Queues

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  • Alejandro Corvalan

Abstract

This note examines the distributional implications of introducing a fast-track queue for accessing a service when agents are heterogeneous in both income and service valuation. Relative to a single free queue, I show that willingness to adopt the priority system is determined solely by income, regardless of service valuation. High-income individuals benefit from the fast-track access, while low-income individuals are worse off and remain in the free line. Middle-income individuals weakly prefer the single free queue; yet, under the priority regime, they pay for fast-track access. Thus, the use of the priority queue does not reveal preferences for the priority system.

Suggested Citation

  • Alejandro Corvalan, 2025. "The Distributional Consequences of Paid-Priority Queues," Papers 2512.10594, arXiv.org.
    • Handle: RePEc:arx:papers:2512.10594
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    References listed on IDEAS

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