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Problem Definition: Customers arriving at a service provider are faced with a queue. On joining the queue, they get to observe the service speed while waiting in the queue. They renege if the updated wait times are too long. When and how should a revenue-maximizing service provider share service...
Persistent link: https://www.econbiz.de/10012907426
We study a three-server queueing system where servers are heterogeneous in terms of their service speed. The goal of the system operator is to find an optimal routing strategy, which assigns each customer to a server, in order to minimize all customers' expected sojourn time in the system. Using...
Persistent link: https://www.econbiz.de/10012850547
Pay-for-priority is a common practice in congestion-prone service systems. In many applications, customers are allowed to pay and upgrade to priority at any time of their stay in the queue, even if they choose not to do so initially. However, this dynamic in-queue priority-purchasing behavior of...
Persistent link: https://www.econbiz.de/10012851458
Simhon et al. (2016) proved that disclosing queue length to customers when the queue is shorter than some threshold and concealing the information otherwise cannot maximize the throughout of M/M/1 queues---when customers are familiar with the policy and the threshold. We show that said policy...
Persistent link: https://www.econbiz.de/10012855387
We consider an M/M/1 queueing system with a pay-for-priority option, and study customers' joint decisions between joining/balking and pay-for-priority. The equilibrium strategies are thus two-dimensional. First, we fully characterize the equilibrium structure and identify the Pareto-dominant...
Persistent link: https://www.econbiz.de/10012934740
This paper investigates a hybrid service system with a cloud server and an in-house server. We consider two different scenarios, namely hybrid service system with orbit space and hybrid service system without orbit space. In the hybrid service system with orbit space, customers who fail to enter...
Persistent link: https://www.econbiz.de/10014243705
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This paper presents a framework for assessing the economic efficiency of different long-run network pricing models. The aim is to provide a quantifiable efficiency measure that will inform regulators, network operators, and network users when an alternative pricing model is contemplated. The...
Persistent link: https://www.econbiz.de/10009428683