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Self-Interested Routing in Queueing Networks

Author

Listed:
  • Ali K. Parlaktürk

    () (Graduate School of Business, Stanford University, Stanford, California 94305)

  • Sunil Kumar

    () (Graduate School of Business, Stanford University, Stanford, California 94305)

Abstract

We study self-interested routing in stochastic networks, taking into account the discrete stochastic dynamics of such networks. We analyze a two-station multiclass queueing network in which the system manager chooses the scheduling rule and individual customers choose routes in a self-interested manner. We show that this network can be unstable in Nash equilibrium under some scheduling rules. We also design a nontrivial scheduling rule that negates the performance degradation resulting from self-interested routing and achieves a Nash equilibrium with performance comparable to the first-best solution.

Suggested Citation

  • Ali K. Parlaktürk & Sunil Kumar, 2004. "Self-Interested Routing in Queueing Networks," Management Science, INFORMS, vol. 50(7), pages 949-966, July.
  • Handle: RePEc:inm:ormnsc:v:50:y:2004:i:7:p:949-966
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    File URL: http://dx.doi.org/10.1287/mnsc.1040.0251
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    References listed on IDEAS

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    1. Colin E. Bell & Shaler Stidham, Jr., 1983. "Individual versus Social Optimization in the Allocation of Customers to Alternative Servers," Management Science, INFORMS, vol. 29(7), pages 831-839, July.
    2. Naor, P, 1969. "The Regulation of Queue Size by Levying Tolls," Econometrica, Econometric Society, vol. 37(1), pages 15-24, January.
    3. Constantinos Maglaras & Assaf Zeevi, 2003. "Pricing and Capacity Sizing for Systems with Shared Resources: Approximate Solutions and Scaling Relations," Management Science, INFORMS, vol. 49(8), pages 1018-1038, August.
    4. Jan A. Van Mieghem, 2000. "Price and Service Discrimination in Queuing Systems: Incentive Compatibility of Gc\mu Scheduling," Management Science, INFORMS, vol. 46(9), pages 1249-1267, September.
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    Cited by:

    1. Vasiliki Kostami & Amy R. Ward, 2009. "Managing Service Systems with an Offline Waiting Option and Customer Abandonment," Manufacturing & Service Operations Management, INFORMS, vol. 11(4), pages 644-656, November.
    2. Lauren Xiaoyuan Lu & Jan A. Van Mieghem & R. Canan Savaskan, 2009. "Incentives for Quality Through Endogenous Routing," Manufacturing & Service Operations Management, INFORMS, vol. 11(2), pages 254-273, July.
    3. Brooks, James D. & Kar, Koushik & Mendonça, David J., 2016. "Allocation of flows in closed bipartite queueing networks," European Journal of Operational Research, Elsevier, vol. 255(2), pages 333-344.

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