search query: @indexterm QUEUING THEORY / total: 512
reference: 144 / 512
| Author: | Mendelson, H. Whang, S. |
| Title: | Optimal incentive-compatible priority pricing for the M/M/1 queue. |
| Journal: | Operations Research
1990 : SEP-OCT, VOL. 38:5, p. 870-883 |
| Index terms: | QUEUING THEORY PRICING |
| Language: | eng |
| Abstract: | A system that is modelled as a queueing system with multiple user classes is considered. Each class is characterized by its daily cost per unit of time, and by its expected service time, as well as by its demand function. A priority pricing scheme is developed that aligns the incentives of users possessing private information with the overall optimum. The pricing mechanism is optimal and incentive-compatible, meaning that the arrival rates and execution priorities jointly maximize the expected net value of the system while being determined on a decentralized basis. |
SCIMA