Priority Service: Pricing, Investment, and Market Organization.

S-Tier
Journal: American Economic Review
Year: 1987
Volume: 77
Issue: 5
Pages: 899-916

Authors (2)

Chao, Hung-po (not in RePEc) Wilson, Robert (Stanford University)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Priority service offers a menu of contingent contracts for distribution of scarce supplies. Prices inducing customers' efficient self-selection are expectations of spot prices for comparable service. Customers' selections reveal the benefit of capacity expansion. Priority service can be implemented via sale of "priority points" or via provision of compensatory insurance. Sever al priority classes suffice to obtain most of the efficiency gains. P riority service Pareto dominates random rationing if excess revenue i s refunded equally to customers. Copyright 1987 by American Economic Association.

Technical Details

RePEc Handle
repec:aea:aecrev:v:77:y:1987:i:5:p:899-916
Journal Field
General
Author Count
2
Added to Database
2026-01-29