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A Queuing Model of the Market for Access to Trading Partners

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  • Michael Sattinger

    (University at Albany, State University of New York, U.S.A.)

Abstract

In this article, a market for access to trading partners arises through the operation of a competitive market in which consumers queue for goods at firms. Equilibrium occurs when firms and buyers face the same trade-off between price and wait time. The trade-off measures the cost to firms of more customers and the cost to customers of a shorter expected wait time. The queuing model is related to mechanisms that ration goods among potential buyers and to models in which the good is characterized by price and by a second variable reflecting likelihood of or delay in transaction. Copyright Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association

Suggested Citation

  • Michael Sattinger, 2002. "A Queuing Model of the Market for Access to Trading Partners," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(2), pages 533-548, May.
    • Handle: RePEc:ier:iecrev:v:43:y:2002:i:2:p:533-548
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    Cited by:

    1. Guillaume Rocheteau & Pierre‐Olivier Weill, 2011. "Liquidity in Frictional Asset Markets," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 43(s2), pages 261-282, October.
    2. de Palma, André & Fosgerau, Mogens, 2013. "Random queues and risk averse users," European Journal of Operational Research, Elsevier, vol. 230(2), pages 313-320.
    3. Macarena Lozano & Pilar Moreno, 2008. "A discrete time single-server queue with balking: economic applications," Applied Economics, Taylor & Francis Journals, vol. 40(6), pages 735-748.
    4. Ahn, Tom & Arcidiacono, Peter, 2004. "Paying to queue: a theory of locational differences in nonunion wages," Journal of Urban Economics, Elsevier, vol. 55(3), pages 565-579, May.
    5. Sarma Nayantara, 2021. "Queuing to leave: A new approach to immigration," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 12(1), pages 1-29, January.

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