Economic Theory

, Volume 33, Issue 1, pp 121–143

Congestion allocation for distributed networks: an experimental study

Symposium

DOI: 10.1007/s00199-007-0213-z

Cite this article as:
Chen, Y., Razzolini, L. & Turocy, T.L. Economic Theory (2007) 33: 121. doi:10.1007/s00199-007-0213-z

Abstract

This paper reports an experimental study of two prominent congestion and cost allocation mechanisms for distributed networks. We study the fair queuing (or serial) and the FIFO (or average cost pricing) mechanisms under two different treatments: a complete information treatment and a limited information treatment designed to simulate distributed networks. Experimental results show that the fair queuing mechanism performs significantly better than FIFO in all treatments in terms of efficiency, predictability measured as frequency of equilibrium play, and the speed of convergence to equilibrium.

Keywords

Serial cost sharing Congestion allocation Experiment 

JEL Classification Numbers

C91 D83 

Copyright information

© Springer-Verlag 2007

Authors and Affiliations

  • Yan Chen
    • 1
  • Laura Razzolini
    • 2
  • Theodore L. Turocy
    • 3
  1. 1.School of InformationUniversity of MichiganAnn ArborUSA
  2. 2.Department of Economics, School of BusinessVirginia Commonwealth UniversityRichmondUSA
  3. 3.Department of EconomicsTexas A&M UniversityCollege StationUSA

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