Poorly designed waiting lists can be inefficient and unfair.How to Allocate Subsidized Housing More Efficiently
Paper Dynamic Matching in Overloaded Waiting-Lists
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.
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- Social Sector Theory