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Externalities, Tangible Externalities, and Queue Disciplines

Author

Listed:
  • Moshe Haviv

    (Department of Statistics, The Hebrew University of Jerusalem, 91905 Jerusalem, Israel)

  • Ya'acov Ritov

    (Department of Econometrics, The University of Sydney, Sydney NSW 2006, Australia)

Abstract

Externalities are the (marginal) costs that a user of a common resource imposes on others. We introduce the efficient measure of tangible externalities that are the costs that a user imposes on others while being served. Then, for a single server queueing system under various service disciplines, we compute the expected externalities and the expected tangible externalities conditioning on the length of the service requirement.

Suggested Citation

  • Moshe Haviv & Ya'acov Ritov, 1998. "Externalities, Tangible Externalities, and Queue Disciplines," Management Science, INFORMS, vol. 44(6), pages 850-858, June.
    • Handle: RePEc:inm:ormnsc:v:44:y:1998:i:6:p:850-858
    DOI: 10.1287/mnsc.44.6.850
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    References listed on IDEAS

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    1. Newbery, David M, 1990. "Pricing and Congestion: Economic Principles Relevant to Pricing Roads," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 6(2), pages 22-38, Summer.
    2. Sanjeev Dewan & Haim Mendelson, 1990. "User Delay Costs and Internal Pricing for a Service Facility," Management Science, INFORMS, vol. 36(12), pages 1502-1517, December.
    3. Carlin, Alan & Park, Rolla Edward, 1970. "Marginal Cost Pricing of Airport Runway Capacity," American Economic Review, American Economic Association, vol. 60(3), pages 310-319, June.
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    Citations

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    Cited by:

    1. Royi Jacobovic, 2022. "Regulation of a single-server queue with customers who dynamically choose their service durations," Queueing Systems: Theory and Applications, Springer, vol. 101(3), pages 245-290, August.
    2. Moshe Haviv & Binyamin Oz, 2018. "Self-Regulation of an Unobservable Queue," Management Science, INFORMS, vol. 64(5), pages 2380-2389, May.
    3. Moulin, Herve, 2005. "Split-Proof Probabilistic Scheduling," Working Papers 2004-06, Rice University, Department of Economics.
    4. Kartik Hosanagar & John Chuang & Ramayya Krishnan & Michael D. Smith, 2008. "Service Adoption and Pricing of Content Delivery Network (CDN) Services," Management Science, INFORMS, vol. 54(9), pages 1579-1593, September.
    5. Yezekael Hayel & Bruno Tuffin, 2006. "An Optimal Congestion and Cost-sharing Pricing Scheme for Multiclass Services," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 64(3), pages 445-465, December.
    6. Moshe Haviv & Binyamin Oz, 2014. "Self-regulation of a queue via random priorities," Discussion Paper Series dp674, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.
    7. Jeff Hong, L. & Xu, Xiaowei & Zhang, Sheng Hao, 2015. "Capacity reservation for time-sensitive service providers: An application in seaport management," European Journal of Operational Research, Elsevier, vol. 245(2), pages 470-479.
    8. Refael Hassin & Ran I. Snitkovsky, 2017. "Strategic customer behavior in a queueing system with a loss subsystem," Queueing Systems: Theory and Applications, Springer, vol. 86(3), pages 361-387, August.
    9. Royi Jacobovic & Nikki Levering & Onno Boxma, 2023. "Externalities in the M/G/1 queue: LCFS-PR versus FCFS," Queueing Systems: Theory and Applications, Springer, vol. 104(3), pages 239-267, August.
    10. Albert Y. Ha, 2001. "Optimal Pricing That Coordinates Queues with Customer-Chosen Service Requirements," Management Science, INFORMS, vol. 47(7), pages 915-930, July.
    11. Royi Jacobovic, 2022. "Internalization of externalities in queues with discretionary services," Queueing Systems: Theory and Applications, Springer, vol. 100(3), pages 453-455, April.
    12. Sagnika Sen & T. S. Raghu & Ajay Vinze, 2009. "Demand Heterogeneity in IT Infrastructure Services: Modeling and Evaluation of a Dynamic Approach to Defining Service Levels," Information Systems Research, INFORMS, vol. 20(2), pages 258-276, June.

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