The market for ski runs or amusement rides often features admission tickets, no explicit prices for rides, and queues. Although the price of admission tickets are much less responsive than the length of queues to variations in demand, we show that the outcomes are nearly efficient under plausible conditions. Then we show that similar results obtain for some familiar congestion problems and for profit-sharing schemes in the labor market.

The market for ski runs or amusement rides often features admission tickets with no explicit price per ride. Therefore, the equilibrium i nvolves queues, which are systematically longer during peak periods s uch as weekends. Moreover, the prices of admission tickets are much l ess responsive than the length of queues to variations in demand, eve n when these variations are predictable. Despite the queues and stick y prices, the authors show that the outcomes are nearly efficient und er plausible conditions. They then show that similar results obtain f or some familiar congestion problems and for profit-sharing schemes i n the labor market.