IDEAS home Printed from https://ideas.repec.org/p/hhs/sdueko/2014_012.html
   My bibliography  Save this paper

Strategic Behavior and Social Outcomes in a Bottleneck Queue: Experimental Evidence

Author

Listed:

Abstract

We consider a class of three-player queuing games where players independently choose when to arrive at a bottleneck facility that serves only one at a time. Players are impatient for service but cannot arrive before the facility opens and they dislike time spent in queue. We derive the equilibrium arrivals under the first-in-first-out (FIFO), last-in-first-out (LIFO), and service-in-random-order (SIRO) queue disciplines and compare these equilibrium predictions to outcomes from a laboratory experiment. LIFO provides higher equilibrium welfare than FIFO and SIRO since the players arrive such that lower congestion is induced. Experimental evidence confirms that employing different queue disciplines indeed affects the strategic behavior of players and thereby the level of congestion. The experimental participants do not, however, behave as prescribed by the equilibrium predictions. They obtain significantly higher welfare than prescribed by equilibrium under all queue disciplines. Our results moreover suggest that people perceive LIFO as the most unfair of the three disciplines although the theoretical results suggest that it is welfare optimal.

Suggested Citation

  • Breinbjerg, Jesper & Sebald, Alexander & Østerdal, Lars Peter, 2014. "Strategic Behavior and Social Outcomes in a Bottleneck Queue: Experimental Evidence," Discussion Papers of Business and Economics 12/2014, University of Southern Denmark, Department of Business and Economics.
  • Handle: RePEc:hhs:sdueko:2014_012
    as

    Download full text from publisher

    File URL: http://static.sdu.dk/mediafiles//4/3/F/%7B43F80C9B-3533-4838-9E08-DE09931B9379%7Ddpbe12_2014.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory of Fairness, Competition, and Cooperation," The Quarterly Journal of Economics, Oxford University Press, vol. 114(3), pages 817-868.
    2. Stein, William E. & Rapoport, Amnon & Seale, Darryl A. & Zhang, Hongtao & Zwick, Rami, 2007. "Batch queues with choice of arrivals: Equilibrium analysis and experimental study," Games and Economic Behavior, Elsevier, vol. 59(2), pages 345-363, May.
    3. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1999. "Information and time-of-usage decisions in the bottleneck model with stochastic capacity and demand," European Economic Review, Elsevier, vol. 43(3), pages 525-548, March.
    4. Palfrey, Thomas R. & Wang, Stephanie W., 2009. "On eliciting beliefs in strategic games," Journal of Economic Behavior & Organization, Elsevier, pages 98-109.
    5. Rapoport, Amnon & Stein, William E. & Parco, James E. & Seale, Darryl A., 2004. "Equilibrium play in single-server queues with endogenously determined arrival times," Journal of Economic Behavior & Organization, Elsevier, vol. 55(1), pages 67-91, September.
    6. Drew Fudenberg & David K. Levine, 1998. "The Theory of Learning in Games," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061945, January.
    7. 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, pages 161-179.
    8. repec:eee:gamebe:v:104:y:2017:i:c:p:165-176 is not listed on IDEAS
    9. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
    10. John Conlisk, 1996. "Why Bounded Rationality?," Journal of Economic Literature, American Economic Association, pages 669-700.
    11. 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.
    12. Vickrey, William S, 1969. "Congestion Theory and Transport Investment," American Economic Review, American Economic Association, pages 251-260.
    13. Grether, David M & Plott, Charles R, 1979. "Economic Theory of Choice and the Preference Reversal Phenomenon," American Economic Review, American Economic Association, pages 623-638.
    14. de Palma, André & Fosgerau, Mogens, 2013. "Random queues and risk averse users," European Journal of Operational Research, Elsevier, vol. 230(2), pages 313-320.
    15. Grether, David M & Plott, Charles R, 1979. "Economic Theory of Choice and the Preference Reversal Phenomenon," American Economic Review, American Economic Association, pages 623-638.
    16. André de Palma & Mogens Fosgerau, 2011. "Dynamic Traffic Modeling," Chapters,in: A Handbook of Transport Economics, chapter 9 Edward Elgar Publishing.
    17. Hassin, Refael, 1985. "On the Optimality of First Come Last Served Queues," Econometrica, Econometric Society, vol. 53(1), pages 201-202, January.
    18. Platz, Trine Tornøe & Østerdal, Lars Peter, 2017. "The curse of the first-in–first-out queue discipline," Games and Economic Behavior, Elsevier, pages 165-176.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Platz, Trine Tornøe & Østerdal, Lars Peter, 2017. "The curse of the first-in–first-out queue discipline," Games and Economic Behavior, Elsevier, pages 165-176.
    2. 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.
    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.
    4. repec:eee:ejores:v:261:y:2017:i:2:p:595-605 is not listed on IDEAS

    More about this item

    Keywords

    Queue disciplines; congestion; equilibrium; experiments; fairness;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:sdueko:2014_012. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lene Holbæk). General contact details of provider: http://edirc.repec.org/data/okioudk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.