ABSTRACT

Waiting lists are a form of rationing under situations of excess demand, when the provider is either unable or unwilling to increase supply by expanding capacity. Waiting lists are either on a first-come, first-served basis, or use some form of priority criteria. Examples in the non-profit field are nursing homes and hospices, day-care centres, schools, universities and certain kinds of hospitals. Research has shown that non-profit organizations are more likely to use waiting lists than expand capacity, as such lists are seen as a sign of reputation and quality. Businesses, however, are more likely to regard waiting lists as inefficient, and will seek to expand capacity to meet demand.