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Regulating an observable M/M/1 queue

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  • Moshe Haviv
  • Binyamin Oz

Abstract

Naor (1969) was the first to observe that in a single-server memoryless queue, customers who inspect the queue length upon arrival and accordingly decide whether to join or not may join even if from the social point of view they are worse of. The question then is how to mechanically design the system such that customers will join only queue lengths that are advised by society, while still minding their own selfish utility. After reviewing some existing mechanisms (some involving money transfers and some not), we suggest novel ones that do not involve money transfers. They possess some advantages over the existing ones, which we itemize.

Suggested Citation

  • Moshe Haviv & Binyamin Oz, 2015. "Regulating an observable M/M/1 queue," Discussion Paper Series dp691, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.
    • Handle: RePEc:huj:dispap:dp691
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    References listed on IDEAS

    as
    1. Edelson, Noel M & Hildebrand, David K, 1975. "Congestion Tolls for Poisson Queuing Processes," Econometrica, Econometric Society, vol. 43(1), pages 81-92, January.
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    3. Rafael Hassin, 1995. "Decentralized Regulation of a Queue," Management Science, INFORMS, vol. 41(1), pages 163-173, January.
    4. Hassin, Refael, 1985. "On the Optimality of First Come Last Served Queues," Econometrica, Econometric Society, vol. 53(1), pages 201-202, January.
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