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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," CORE Discussion Papers RP 2179, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvrp:2179
    Note: In : Games and Economic Behavior, 68, 220-232, 2010
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    File URL: http://dx.doi.org/10.1016/j.geb.2009.07.003
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    References listed on IDEAS

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    Cited by:

    1. repec:eee:matsoc:v:90:y:2017:i:c:p:73-79 is not listed on IDEAS
    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. Duygu Yengin & Youngsub Chun, 2015. "Welfare Lower Bounds and Strategyproofness in the Queueing Problem," School of Economics Working Papers 2015-11, University of Adelaide, School of Economics.
    4. 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.
    5. 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.
    6. repec:spr:joecth:v:64:y:2017:i:2:d:10.1007_s00199-016-0983-2 is not listed on IDEAS
    7. repec:spr:orspec:v:40:y:2018:i:3:d:10.1007_s00291-018-0512-8 is not listed on IDEAS
    8. 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.
    9. 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.
    10. Chun, Youngsub & Mitra, Manipushpak, 2014. "Subgroup additivity in the queueing problem," European Journal of Operational Research, Elsevier, vol. 238(1), pages 281-289.
    11. Anouar El Haji & Sander Onderstal, 2015. "Trading Places: An Experimental Comparison of Reallocation Mechanisms for Priority Queuing," Tinbergen Institute Discussion Papers 15-063/VII, Tinbergen Institute.
    12. 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.
    13. 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.

    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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