Affiliation:
1. University of Chicago Booth School of Business (email: )
Abstract
This paper introduces a stylized model to capture distinctive features of waiting list allocation mechanisms. First, agents choose among items with associated expected wait times. Waiting times serve a similar role to that of monetary prices in directing agents' choices and rationing items. Second, the expected wait for an item is endogenously determined and randomly fluctuates over time. We evaluate welfare under these endogenously determined waiting times and find that waiting time fluctuations lead to misallocation and welfare loss. A simple randomized assignment policy can reduce misallocation and increase welfare. (JEL C78, D61, D82, D83)
Publisher
American Economic Association
Subject
Economics and Econometrics
Cited by
21 articles.
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