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Characterizations of Pareto-efficient, fair, and strategy-proof allocation rules in queueing problems

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  • KAYI, Cagatay
  • RAMAEKERS, Eve

Abstract

A set of agents with possibly different waiting costs have to receive the same service one after the other. Efficiency requires to maximize total welfare. Equity requires to at least treat equal agents equally. One must form a queue, set up monetary transfers to compensate agents having to wait, and not a priori arbitrarily exclude agents from positions. As one may not know agents’ waiting costs, they may have no incentive to reveal them. We identify the only rule satisfying Pareto-efficiency, a weak equity axiom as equal treatment of equals in welfare or symmetry, and strategy-proofness. It satisfies stronger axioms, as no-envy and anonymity. Further, its desirability extends to related problems. To obtain these results, we prove that even non-single-valued rules satisfy Pareto-efficiency of queues and strategy-proofness if and only if they select Pareto-efficient queues and set transfers in the spirit of Groves (1973). This holds in other problems, provided the domain of quasi-linear preferences is rich enough.
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Suggested Citation

  • KAYI, Cagatay & RAMAEKERS, Eve, 2010. "Characterizations of Pareto-efficient, fair, and strategy-proof allocation rules in queueing problems," LIDAM Reprints CORE 2179, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvrp:2179
    DOI: 10.1016/j.geb.2009.07.003
    Note: In : Games and Economic Behavior, 68, 220-232, 2010
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    Citations

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    Cited by:

    1. Bloch, Francis, 2017. "Second-best mechanisms in queuing problems without transfers:The role of random priorities," Mathematical Social Sciences, Elsevier, vol. 90(C), pages 73-79.
    2. Youngsub Chun & Manipushpak Mitra & Suresh Mutuswami, 2017. "Reordering an existing queue," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 49(1), pages 65-87, June.
    3. Kazuhiko Hashimoto & Hiroki Saitoh, 2012. "Strategy-proof and anonymous rule in queueing problems: a relationship between equity and efficiency," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 38(3), pages 473-480, March.
    4. Yengin, Duygu & Chun, Youngsub, 2020. "No-envy, solidarity, and strategy-proofness in the queueing problem," Journal of Mathematical Economics, Elsevier, vol. 88(C), pages 87-97.
    5. Erwin Ooghe, 2019. "Markets, Queues, and Taxes," CESifo Working Paper Series 7910, CESifo.
    6. Anouar El Haji & Sander Onderstal, 2019. "Trading places: An experimental comparison of reallocation mechanisms for priority queuing," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 28(4), pages 670-686, November.
    7. Parikshit De & Manipushpak Mitra, 2017. "Incentives and justice for sequencing problems," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 64(2), pages 239-264, August.
    8. Chun, Youngsub & Mitra, Manipushpak, 2014. "Subgroup additivity in the queueing problem," European Journal of Operational Research, Elsevier, vol. 238(1), pages 281-289.
    9. Duygu Yengin, 2017. "No-envy and egalitarian-equivalence under multi-object-demand for heterogeneous objects," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 48(1), pages 81-108, January.
    10. Chun, Youngsub & Yengin, Duygu, 2017. "Welfare lower bounds and strategy-proofness in the queueing problem," Games and Economic Behavior, Elsevier, vol. 102(C), pages 462-476.
    11. Chun, Youngsub & Mitra, Manipushpak & Mutuswami, Suresh, 2019. "A characterization of the symmetrically balanced VCG rule in the queueing problem," Games and Economic Behavior, Elsevier, vol. 118(C), pages 486-490.
    12. Banerjee, Sreoshi & De, Parikshit & Mitra, Manipushpak, 2020. "A welfarist approach to sequencing problems with incentives," MPRA Paper 107188, University Library of Munich, Germany.
    13. Youngsub Chun & Manipushpak Mitra & Suresh Mutuswami, 2014. "Egalitarian equivalence and strategyproofness in the queueing problem," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 56(2), pages 425-442, June.
    14. Chun, Youngsub & Mitra, Manipushpak & Mutuswami, Suresh, 2019. "Egalitarianism in the queueing problem," Journal of Mathematical Economics, Elsevier, vol. 81(C), pages 48-56.
    15. Dominik Kress & Sebastian Meiswinkel & Erwin Pesch, 2018. "Mechanism design for machine scheduling problems: classification and literature overview," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 40(3), pages 583-611, July.
    16. Youngsub Chun & Manipushpak Mitra & Suresh Mutuswami, 2019. "Recent developments in the queueing problem," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 27(1), pages 1-23, April.
    17. Chun, Youngsub & Mitra, Manipushpak & Mutuswami, Suresh, 2014. "Characterizations of pivotal mechanisms in the queueing problem," Mathematical Social Sciences, Elsevier, vol. 72(C), pages 62-66.

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    More about this item

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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