When students apply to universities or unemployed workers search in the labor market, anincrease of time input of one person (resulting in more applications) will increase the waitingtime of the others. In this paper it will be show that in a decentralized market there will beexcessive congestion Moreover, congestion increases with both the mean and the varianceof the net benefits associated with waiting across the population.
|Place of Publication||Amsterdam|
|Publisher||Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam|
|Publication status||Published - 1997|