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Dynamic Matching in Overloaded Waiting Lists

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  • Jacob D. Leshno

Abstract

This paper introduces a stylized model to capture distinctive features of waiting list allocation mechanisms. First, agents choose among items with associated expected wait times. Waiting times serve a similar role to that of monetary prices in directing agents' choices and rationing items. Second, the expected wait for an item is endogenously determined and randomly fluctuates over time. We evaluate welfare under these endogenously determined waiting times and find that waiting time fluctuations lead to misallocation and welfare loss. A simple randomized assignment policy can reduce misallocation and increase welfare.

Suggested Citation

  • Jacob D. Leshno, 2022. "Dynamic Matching in Overloaded Waiting Lists," American Economic Review, American Economic Association, vol. 112(12), pages 3876-3910, December.
    • Handle: RePEc:aea:aecrev:v:112:y:2022:i:12:p:3876-3910
    DOI: 10.1257/aer.20201111
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    Cited by:

    1. Cody Cook & Pearl Z. Li & Ariel J. Binder, 2023. "Where to Build Affordable Housing? Evaluating the Tradeoffs of Location," Working Papers 23-62, Center for Economic Studies, U.S. Census Bureau.
    2. Baccara, Mariagiovanna & Lee, SangMok & Yariv, Leeat, 2023. "Task allocation and on-the-job training," Journal of Economic Theory, Elsevier, vol. 207(C).
    3. Mertikopoulos, Panayotis & Nax, Heinrich H. & Pradelski, Bary S.R., 2024. "Quick or cheap? Breaking points in dynamic markets," Journal of Mathematical Economics, Elsevier, vol. 112(C).
    4. Lingbo Huang & Tracy Xiao Liu & Jun Zhang, 2023. "Born to wait? A study on allocation rules in booking systems," Discussion Papers 2023-04, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    5. Lei, Xiaochang, 2023. "Optimal queue to minimize waste," Mathematical Social Sciences, Elsevier, vol. 123(C), pages 87-94.
    6. Maxey, Tyler, 2023. "Dynamic matching with transfers," Economics Letters, Elsevier, vol. 233(C).
    7. Süleyman Kerimov & Itai Ashlagi & Itai Gurvich, 2024. "Dynamic Matching: Characterizing and Achieving Constant Regret," Management Science, INFORMS, vol. 70(5), pages 2799-2822, May.

    More about this item

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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