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Queueing games with an endogenous number of machines

Author

Listed:
  • Ata Atay

    (University of Barcelona and BEAT)

  • Christian Trudeau

    (University of Windsor)

Abstract

This paper studies queueing problems with an endogenous number of machines with and without an initial queue, the novelty being that coalitions not only choose how to queue, but also on how many machines. For a given problem, agents can (de)activate as many machines as they want, at a cost. After minimizing the total cost (processing costs and machine costs), we use a game theoretical approach to share to proceeds of this cooperation, and study the existence of stable allocations. First, we study queueing problems with an endogenous number of machines, and examine how to share the total cost. We provide an upper bound and a lower bound on the cost of a machine to guarantee the non-emptiness of the core (the set of stable allocations). Next, we study requeueing problems with an endogenous number of machines, where there is an existing queue. We examine how to share the cost savings compared to the initial situation, when optimally requeueing/changing the number of machines. Although, in general, stable allocation may not exist, we guarantee the existence of stable allocations when all machines are considered public goods, and we start with an initial schedule that might not have the optimal number of machines, but in which agents with large waiting costs are processed first.

Suggested Citation

  • Ata Atay & Christian Trudeau, 2022. "Queueing games with an endogenous number of machines," UB School of Economics Working Papers 2022/429, University of Barcelona School of Economics.
    • Handle: RePEc:ewp:wpaper:429web
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    File URL: http://hdl.handle.net/2445/188596
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    References listed on IDEAS

    as
    1. Herbert Hamers & Flip Klijn & Bas Velzen, 2005. "On the Convexity of Precedence Sequencing Games," Annals of Operations Research, Springer, vol. 137(1), pages 161-175, July.
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    More about this item

    Keywords

    Queueing problems; convexity; cost sharing; allocation problems.;
    All these keywords.

    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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