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Self-Interested Routing in Queueing Networks

Author

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  • 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
    DOI: 10.1287/mnsc.1040.0251
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    References listed on IDEAS

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    Cited by:

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    9. Roberto Cominetti & José R. Correa & Nicolás E. Stier-Moses, 2009. "The Impact of Oligopolistic Competition in Networks," Operations Research, INFORMS, vol. 57(6), pages 1421-1437, December.

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