Dynamic Matching in Overloaded Waiting Lists
70 Pages Posted: 13 May 2017 Last revised: 28 Aug 2019
Date Written: August 26, 2019
To study waiting-lists as allocation mechanisms, we analyze a class of waiting-list mechanisms where agents are offered a choice among items with corresponding expected waiting times. Because the expected waiting time required for a given item fluctuates over time, different agents may face different waiting times, potentially resulting in misallocation of items. In a stylized model we derive expressions for welfare and compare mechanisms. We find that a simple randomized assignment policy can decrease expected wait fluctuations, thereby reducing misallocation and increasing welfare.
Keywords: Dynamic Matching, Waiting-Lists, Queueing, Misallocation, Rationing
JEL Classification: C78, C61, D3
Suggested Citation: Suggested Citation