When do I prefer first come, first served over high bid wins? There are so many variables here. In the free market it should be up to the seller and the customer to figure out how they want to make a deal.
I think first come, first served would be preferred by me when standing in lines at department stores, grocery stores, gas stations, etc. Also, if I am going to an event, park, or concert and I can buy my ticket online ahead of time that would allow me to bypass the ticket sale line that day then I would certainly do this.
High bid wins has a place though. Online auction sites like eBay and auto auctions are some good examples. Now, also to be considered here are fast lane passes which are offered by some parks like Carowinds in Charlotte, North Carolina. These passes cost more money which allows you to get on the ride much quicker. This means I get to enjoy more rides in the amount of time I spend at the park. Sometimes in life your time is worth more than your money.