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Author:Ha, A. Y.
Title:Optimal Pricing That Coordinates Queues with Customer-Chosen Service Requirements
Journal:Management Science
2001 : JUL, VOL. 47:7, p. 915-931
Index terms:PRICING
SERVICE
CUSTOMERS
Language:eng
Abstract:This article considers the problem of coordinating the admission rates and service requirements of a multiclass queue when these decisions are made on a decentralized basis. The customer classes are characterized by different demand patterns, delay costs, and service costs. Customers make individual decisions on whether to join the queue and, if so, their service requirements. Their class identities and service requirements are private information not known to the system manager. The authors develop a two-stage decision framework to analyze the problem and characterize the optimal admission rates and service requirements under both centralized and decentralized assumptions.
SCIMA record nr: 234262
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