IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v309y2023i1p217-224.html
   My bibliography  Save this article

Strategic behavior in queues with arrival rate uncertainty

Author

Listed:
  • Hassin, Refael
  • Haviv, Moshe
  • Oz, Binyamin

Abstract

This paper shows how to account for arrival rate uncertainty in the analysis of queueing models with strategic customer behavior. We consider a general queueing model with a Poisson arrival process whose rate is random, and realized once for the entire process. We show that the distribution of the arrival rate at arrival instants is the size-biased counterpart of the original distribution. In particular, the ASTA (arrivals see time averages) property does not hold but rather a rate-biased version of it which we define and coin by the term RASTA (Rate-biased ASTA). We show that the RASTA phenomenon plays a crucial role in the analysis of strategic behavior of customers who evaluate the consequences of the actions they take upon arrival. By studying such a system with a single server and strategic customers who decide whether to join or balk without observing the queue, we exemplify the importance of RASTA in deriving the equilibrium behavior.

Suggested Citation

  • Hassin, Refael & Haviv, Moshe & Oz, Binyamin, 2023. "Strategic behavior in queues with arrival rate uncertainty," European Journal of Operational Research, Elsevier, vol. 309(1), pages 217-224.
  • Handle: RePEc:eee:ejores:v:309:y:2023:i:1:p:217-224
    DOI: 10.1016/j.ejor.2023.01.015
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221723000152
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ejor.2023.01.015?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Antonis Economou & Athanasia Manou, 2013. "Equilibrium balking strategies for a clearing queueing system in alternating environment," Annals of Operations Research, Springer, vol. 208(1), pages 489-514, September.
    2. Haim Mendelson & Seungjin Whang, 1990. "Optimal Incentive-Compatible Priority Pricing for the M/M/1 Queue," Operations Research, INFORMS, vol. 38(5), pages 870-883, October.
    3. Luyi Yang & Laurens Debo & Varun Gupta, 2017. "Trading Time in a Congested Environment," Management Science, INFORMS, vol. 63(7), pages 2377-2395, July.
    4. Omar Besbes & Costis Maglaras, 2009. "Revenue Optimization for a Make-to-Order Queue in an Uncertain Market Environment," Operations Research, INFORMS, vol. 57(6), pages 1438-1450, December.
    5. Edelson, Noel M & Hildebrand, David K, 1975. "Congestion Tolls for Poisson Queuing Processes," Econometrica, Econometric Society, vol. 43(1), pages 81-92, January.
    6. Ying Chen & John J. Hasenbein, 2020. "Knowledge, congestion, and economics: Parameter uncertainty in Naor’s model," Queueing Systems: Theory and Applications, Springer, vol. 96(1), pages 83-99, October.
    7. Naor, P, 1969. "The Regulation of Queue Size by Levying Tolls," Econometrica, Econometric Society, vol. 37(1), pages 15-24, January.
    8. Ronald W. Wolff, 1982. "Poisson Arrivals See Time Averages," Operations Research, INFORMS, vol. 30(2), pages 223-231, April.
    9. Refael Hassin & Ran I. Snitkovsky, 2020. "Social and Monopoly Optimization in Observable Queues," Operations Research, INFORMS, vol. 68(4), pages 1178-1198, July.
    10. Rafael Hassin, 1995. "Decentralized Regulation of a Queue," Management Science, INFORMS, vol. 41(1), pages 163-173, January.
    11. Neil Keon & G. “Anand” Anandalingam, 2005. "A New Pricing Model for Competitive Telecommunications Services Using Congestion Discounts," INFORMS Journal on Computing, INFORMS, vol. 17(2), pages 248-262, May.
    12. Benjamin Melamed & Ward Whitt, 1990. "On Arrivals That See Time Averages," Operations Research, INFORMS, vol. 38(1), pages 156-172, February.
    13. Moshe Haviv & Ramandeep S. Randhawa, 2014. "Pricing in Queues Without Demand Information," Manufacturing & Service Operations Management, INFORMS, vol. 16(3), pages 401-411, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. van Eekelen, Wouter, 2023. "Distributionally robust views on queues and related stochastic models," Other publications TiSEM 9b99fc05-9d68-48eb-ae8c-9, Tilburg University, School of Economics and Management.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shiliang Cui & Zhongbin Wang & Luyi Yang, 2020. "The Economics of Line-Sitting," Management Science, INFORMS, vol. 66(1), pages 227-242, January.
    2. Ying Chen & John J. Hasenbein, 2020. "Knowledge, congestion, and economics: Parameter uncertainty in Naor’s model," Queueing Systems: Theory and Applications, Springer, vol. 96(1), pages 83-99, October.
    3. Chamberlain, Jonathan & Simhon, Eran & Starobinski, David, 2021. "Preemptible queues with advance reservations: Strategic behavior and revenue management," European Journal of Operational Research, Elsevier, vol. 293(2), pages 561-578.
    4. Manlu Chen & Ming Hu & Jianfu Wang, 2022. "Food Delivery Service and Restaurant: Friend or Foe?," Management Science, INFORMS, vol. 68(9), pages 6539-6551, September.
    5. Zhao, Chen & Wang, Zhongbin, 2023. "The impact of line-sitting on a two-server queueing system," European Journal of Operational Research, Elsevier, vol. 308(2), pages 782-800.
    6. Luyi Yang & Zhongbin Wang & Shiliang Cui, 2021. "A Model of Queue Scalping," Management Science, INFORMS, vol. 67(11), pages 6803-6821, November.
    7. Moshe Haviv & Binyamin Oz, 2018. "Self-Regulation of an Unobservable Queue," Management Science, INFORMS, vol. 64(5), pages 2380-2389, May.
    8. Luyi Yang & Shiliang Cui & Zhongbin Wang, 2022. "Design of Covid‐19 testing queues," Production and Operations Management, Production and Operations Management Society, vol. 31(5), pages 2204-2221, May.
    9. Shiliang Cui & Senthil Veeraraghavan, 2016. "Blind Queues: The Impact of Consumer Beliefs on Revenues and Congestion," Management Science, INFORMS, vol. 62(12), pages 3656-3672, December.
    10. Dimitrakopoulos, Y. & Burnetas, A.N., 2016. "Customer equilibrium and optimal strategies in an M/M/1 queue with dynamic service control," European Journal of Operational Research, Elsevier, vol. 252(2), pages 477-486.
    11. Kraig Delana & Nicos Savva & Tolga Tezcan, 2021. "Proactive Customer Service: Operational Benefits and Economic Frictions," Manufacturing & Service Operations Management, INFORMS, vol. 23(1), pages 70-87, 1-2.
    12. Choi, Jay & Kim, Byung-Cheol, 2008. "Net Neutrality and Investment Incentives," Working Paper Series 19111, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    13. William P. Barnett & Daniel A. Levinthal, 2017. "Special Issue Introduction: Evolutionary Logics of Strategy and Organization," Strategy Science, INFORMS, vol. 2(1), pages 1-1, March.
    14. Jay Pil Choi & Byung‐Cheol Kim, 2010. "Net neutrality and investment incentives," RAND Journal of Economics, RAND Corporation, vol. 41(3), pages 446-471, September.
    15. Olga Bountali & Antonis Economou, 2019. "Equilibrium threshold joining strategies in partially observable batch service queueing systems," Annals of Operations Research, Springer, vol. 277(2), pages 231-253, June.
    16. Opher Baron & Antonis Economou & Athanasia Manou, 2022. "Increasing social welfare with delays: Strategic customers in the M/G/1 orbit queue," Production and Operations Management, Production and Operations Management Society, vol. 31(7), pages 2907-2924, July.
    17. Vibhanshu Abhishek & Mustafa Dogan & Alexandre Jacquillat, 2021. "Strategic Timing and Dynamic Pricing for Online Resource Allocation," Management Science, INFORMS, vol. 67(8), pages 4880-4907, August.
    18. David Lingenbrink & Krishnamurthy Iyer, 2019. "Optimal Signaling Mechanisms in Unobservable Queues," Operations Research, INFORMS, vol. 67(5), pages 1397-1416, September.
    19. Yu, Jianjun & Fang, Yanli & Zhong, Yuanguang & Zhang, Xiong & Zhang, Ruijie, 2022. "Pricing and quality strategies for an on-demand housekeeping platform with customer-intensive services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    20. Zhongbin Wang & Luyi Yang & Shiliang Cui & Jinting Wang, 2021. "In-queue priority purchase: a dynamic game approach," Queueing Systems: Theory and Applications, Springer, vol. 97(3), pages 343-381, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:309:y:2023:i:1:p:217-224. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.