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Strategic behavior and social optimization in Markovian vacation queues: The case of heterogeneous customers

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  • Guo, Pengfei
  • Hassin, Refael

Abstract

We consider a single server queueing system in which service shuts down when no customers are present, and is resumed when the queue length reaches a given critical length. We assume customers are heterogeneous on delay sensitivity and analyze customers’ strategic response to this mechanism and compare it to the overall optimal behavior. We provide algorithms to compute the equilibrium arrival rates and also derive the monotonicity of equilibrium and optimal arrival rates. We show that there may exist multiple equilibria in such a system and the optimal arrival rate may be larger or smaller than the decentralized equilibrium one.

Suggested Citation

  • Guo, Pengfei & Hassin, Refael, 2012. "Strategic behavior and social optimization in Markovian vacation queues: The case of heterogeneous customers," European Journal of Operational Research, Elsevier, vol. 222(2), pages 278-286.
    • Handle: RePEc:eee:ejores:v:222:y:2012:i:2:p:278-286
    DOI: 10.1016/j.ejor.2012.05.026
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    References listed on IDEAS

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    1. Senthil Veeraraghavan & Laurens Debo, 2009. "Joining Longer Queues: Information Externalities in Queue Choice," Manufacturing & Service Operations Management, INFORMS, vol. 11(4), pages 543-562, April.
    2. Wei Sun & Pengfei Guo & Naishuo Tian, 2010. "Equilibrium threshold strategies in observable queueing systems with setup/closedown times," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 18(3), pages 241-268, September.
    3. Refael Hassin & Moshe Haviv, 2002. "Nash Equilibrium and Subgame Perfection in Observable Queues," Annals of Operations Research, Springer, vol. 113(1), pages 15-26, July.
    4. Naor, P, 1969. "The Regulation of Queue Size by Levying Tolls," Econometrica, Econometric Society, vol. 37(1), pages 15-24, January.
    5. Pengfei Guo & Refael Hassin, 2011. "Strategic Behavior and Social Optimization in Markovian Vacation Queues," Operations Research, INFORMS, vol. 59(4), pages 986-997, August.
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