Econometrica: Jan 1993, Volume 61, Issue 1
Rationing, Queues, and Black Markets
https://doi.org/0012-9682(199301)61:1<1:RQABM>2.0.CO;2-3
p.
1-28
Victor Polterovich
Several types of rationing and queue mechanisms are compared in a framework of general equilibrium type models under gross substitutability and normality assumptions about consumers' Marshallian demand. During transition from rationing and queues to a market system, a group of low income people loses. The transition involves larger losses for this group if black markets prevail under rationing or queues, while a group of high income consumers gains. Some other comparative statics results are developed for a queue model with black markets.Log In To View Full Content