AN EQUILIBRIUM QUEUING MODEL OF BRIBERY

It is sometimes argued that bribery is inefficient because bureaucrats may cause delays for attracting more bribes. This hypothesis is examined in the context of a queue where customers having different values of time are ranked by their bribe payments to the queue's server. The Nash equilibrium strategies of the customers are de- rived. It is shown that the server is unlikely to slow down the allocation process when bribery is allowed. The model does not have strin- gent informational requirements, and the equilibrium outcome minimizes the average value of time costs of the queue. It also suggests a useful auctioning procedure. © 1985 by The University of Chicago. All rights reserved.