Equilibrium Play in Single-Server Queues with Endogenously Determined Arrival Times
25 Pages Posted: 15 Oct 2004 Last revised: 22 Jul 2008
We study a class of queueing problems with endogenous arrival times that we formulate as non-cooperative n-person games in normal form with discrete strategy spaces, fixed starting and closing times, and complete information. With multiple equilibria in pure strategies, these queueing games give rise to problems of tacit coordination. We first describe and illustrate a Markov chain algorithm used to compute the symmetric mixed-strategy equilibrium solution. Then, we report the results of an experimental study of a large-scale (n=20) queueing game with fixed service time, FIFO queue discipline, and no balking, reneging, and early arrivals. Our results show consistent and replicable patterns of arrival that provide strong support for mixed-strategy equilibrium play on the aggregate but not individual level.
Keywords: Queueing, endogenous arrival times, mixed-strategy equilibrium, experimentation
JEL Classification: C72, C92, D81
Suggested Citation: Suggested Citation