Suppose a limited number of tickets to a popular football game had to be rationed among the public. There are three ways of doing this:
i. Auction: The tickets will go to the highest bidder.
ii. Lottery: A certain number of lucky people will get the tickets.
iii. Queues: The tickets will be sold on a first-come, first-serve basis.
a. Which method would yield the most efficient outcome? Rank the three methods in decreasing order of their efficiency.
b. Which method is most likely to be considered “fair”? Rank the three methods in decreasing order of their perceived fairness.
c. Is the most efficient method also the most fair? What can you infer from this?