Please use this identifier to cite or link to this item:
|Title:||Lottery or waiting-line auction?|
|Source:||Taylor, G.A., Tsui, K.K.K., Zhu, L. (2003). Lottery or waiting-line auction?. Journal of Public Economics 87 (5-6) : 1313-1334. ScholarBank@NUS Repository. https://doi.org/10.1016/S0047-2727(01)00196-7|
|Abstract:||This paper studies the efficiencies of the two most widely used non-price allocation mechanisms: lotteries and waiting-line auctions. As our analysis suggests, in addition to the fairness of the mechanism, the use of lotteries in lieu of waiting-line auctions can be also justified from an efficiency point of view. In particular, we show that the less dispersed consumers' time valuations are, the more efficient is a lottery relative to a waiting-line auction. In addition, we identify four conditions under which a lottery dominates a waiting-line auction in expected social surplus preserving. Furthermore, the numerical simulations we conduct indicate that over a predominantly wide range of circumstances, a lottery is more socially efficient than a waiting-line auction as an allocative mechanism in the absence of a conventional price system. © 2002 Elsevier Science B.V. All rights reserved.|
|Source Title:||Journal of Public Economics|
|Appears in Collections:||Staff Publications|
Show full item record
Files in This Item:
There are no files associated with this item.
checked on Dec 7, 2017
WEB OF SCIENCETM
checked on Nov 23, 2017
checked on Dec 11, 2017
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.