Switching queues, cultural conventions, and social welfare

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Zitierfähiger Link (URI): http://hdl.handle.net/10900/88789
http://nbn-resolving.de/urn:nbn:de:bsz:21-dspace-887896
http://dx.doi.org/10.15496/publikation-30173
Dokumentart: Wissenschaftlicher Artikel
Erscheinungsdatum: 2019-05-20
Originalveröffentlichung: University of Tübingen Working Papers in Economics and Finance ; No. 120
Sprache: Englisch
Fakultät: 6 Wirtschafts- und Sozialwissenschaftliche Fakultät
Fachbereich: Wirtschaftswissenschaften
DDC-Klassifikation: 330 - Wirtschaft
Schlagworte: Entscheidungsprozess
Sozialhilfe
Nash-Gleichgewicht
Freie Schlagwörter:
Decision processes
Queuing
Nash Equilibrium
Social customs
Social welfare
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Abstract:

We use queuing-related behavior as an instrument for assessing the social appeal of alternative cultural norms. Specifically, we study the behavior of rational and sophisticated individuals who stand in a given queue waiting to be served, and who, in order to speed up the process, consider switching to another queue. We look at two regimes that govern the possible order in which the individuals stand should they switch to the other queue: a regime in which cultural convention, social norms, and basic notions of fairness require that the order in the initial queue is preserved, and a regime without such cultural inhibitions, in which case the order in the other queue is random, with each configuration or sequence being equally likely. We seek to find out whether in these two regimes the aggregate of the behaviors of self-interested individuals adds up to the social optimum defined as the shortest possible total waiting time. To do this, we draw on a Nash Equilibrium setting. We find that in the case of the preserved order, the equilibrium outcomes are always socially optimal. However, in the case of the random order, unless the number of individuals is small, the equilibrium outcomes are not socially optimal.

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