The Economics of Queues and Waiting
How Queue Rules Work: FIFO and Beyond
Queues can operate first come first served, by priority, or by random order, and the rule changes who benefits.
Rules matter.
First come first served
The simplest and often the most accepted rule.
Priority
Emergency cases go first in hospitals through triage.
Lotteries
When demand far exceeds supply, random draws such as for school admissions can be fair.
Appointment systems
Booking a slot spreads demand over time.
Triage
An emergency room treats the sickest patients first, even if they arrived later.
Assuming first come first served is always best
Urgency and fairness matter.
Key takeaways
- FIFO is simple.
- Priority serves urgent needs.
- Lotteries handle scarcity.
- Appointments spread demand.
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