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The curse of the first-in-first-out queue discipline

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Abstract

We consider a congested facility where agents can line up at any time they wish after the facility opens (like airplane boarding, or drivers leaving stadium parking lots after a sports event). We show that in Nash equilibrium, within the general family of stochastic queue disciplines with no capacity waste, the focal first-in-first-out (FIFO) queue discipline is the worst while the last-in-first-out (LIFO) discipline is best.

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  • Platz, Trine Tornøe & Østerdal, Lars Peter, 2012. "The curse of the first-in-first-out queue discipline," Discussion Papers of Business and Economics 10/2012, University of Southern Denmark, Department of Business and Economics.
  • Handle: RePEc:hhs:sdueko:2012_010
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    File URL: https://www.sdu.dk/-/media/files/om_sdu/institutter/ivoe/disc_papers/disc_2012/dpbe10_2012.pdf
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    References listed on IDEAS

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    1. Naor, P, 1969. "The Regulation of Queue Size by Levying Tolls," Econometrica, Econometric Society, vol. 37(1), pages 15-24, January.
    2. Glazer, Amihai & Hassin, Refael, 1983. "?/M/1: On the equilibrium distribution of customer arrivals," European Journal of Operational Research, Elsevier, vol. 13(2), pages 146-150, June.
    3. Khan, M. Ali & Sun, Yeneng, 2002. "Non-cooperative games with many players," Handbook of Game Theory with Economic Applications,in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 3, chapter 46, pages 1761-1808 Elsevier.
    4. Vickrey, William S, 1969. "Congestion Theory and Transport Investment," American Economic Review, American Economic Association, vol. 59(2), pages 251-260, May.
    5. Jesper Breinbjerg & Alexander Sebald & Lars Peter Østerdal, 2016. "Strategic behavior and social outcomes in a bottleneck queue: experimental evidence," Review of Economic Design, Springer;Society for Economic Design, vol. 20(3), pages 207-236, September.
    6. de Palma, André & Fosgerau, Mogens, 2013. "Random queues and risk averse users," European Journal of Operational Research, Elsevier, vol. 230(2), pages 313-320.
    7. André de Palma & Mogens Fosgerau, 2011. "Dynamic Traffic Modeling," Chapters,in: A Handbook of Transport Economics, chapter 9 Edward Elgar Publishing.
    8. Hassin, Refael, 1985. "On the Optimality of First Come Last Served Queues," Econometrica, Econometric Society, vol. 53(1), pages 201-202, January.
    9. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1993. "A Structural Model of Peak-Period Congestion: A Traffic Bottleneck with Elastic Demand," American Economic Review, American Economic Association, vol. 83(1), pages 161-179, March.
    10. Otsubo, Hironori & Rapoport, Amnon, 2008. "Vickrey's model of traffic congestion discretized," Transportation Research Part B: Methodological, Elsevier, vol. 42(10), pages 873-889, December.
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Why LIFO beats FIFO
      by Economic Logician in Economic Logic on 2012-06-14 19:10:00
    2. [経済]FIFOは最悪、LIFOがベスト
      by himaginary in himaginaryの日記 on 2012-06-14 12:00:00

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    Cited by:

    1. Breinbjerg, Jesper & Østerdal, Lars Peter, 2017. "Equilibrium Arrival Times to Queues: The Case of Last-Come First-Serve Preemptive-Resume," Discussion Papers of Business and Economics 3/2017, University of Southern Denmark, Department of Business and Economics.
    2. Jesper Breinbjerg & Alexander Sebald & Lars Peter Østerdal, 2016. "Strategic behavior and social outcomes in a bottleneck queue: experimental evidence," Review of Economic Design, Springer;Society for Economic Design, vol. 20(3), pages 207-236, September.
    3. Breinbjerg, Jesper, 2016. "Strategic Arrival Times to Queueing Systems," Discussion Papers of Business and Economics 6/2016, University of Southern Denmark, Department of Business and Economics.

    More about this item

    Keywords

    Bottleneck; queue discipline; Nash equilibrium; FIFO; LIFO; welfare;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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