Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/200258
Authors: 
Stark, Oded
Budzinski, Wiktor
Kosiorowski, Grzegorz
Year of Publication: 
2019
Series/Report no.: 
University of Tübingen Working Papers in Economics and Finance No. 120
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.
Subjects: 
Decision processes
Queuing
Nash Equilibrium
Social customs
Social welfare
JEL: 
C72
D60
Z13
Document Type: 
Working Paper

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