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Optimal Priority-Purchasing and Pricing Decisions in Nonmonopoly and Monopoly Queues

Author

Listed:
  • I. Adiri

    (Technion—Israel Institute of Technology, Haifa, Israel)

  • U. Yechiali

    (Tel Aviv University, Tel Aviv, Israel)

Abstract

An M / M /1 service station (computer center) consists of M separate queues. The i th ( i = 1, 2, …, M ) queue has priority over the j th iff i j . Upon arrival, a customer receives all the information regarding the state of the system and accordingly makes an irrevocable decision as to which queue to join, or rather to balk (leave) and go to a competitor. The higher the priority of the queue, the higher the toll fee to join it but the shorter the time spent in the system. This paper considers nonmonopoly and monopoly cases, and optimal priority-purchasing or balking rules for the newly arrived customer, as well as optimal pricing policies for the service station for both preemptive-resume and non-preemptive-priority disciplines.

Suggested Citation

  • I. Adiri & U. Yechiali, 1974. "Optimal Priority-Purchasing and Pricing Decisions in Nonmonopoly and Monopoly Queues," Operations Research, INFORMS, vol. 22(5), pages 1051-1066, October.
    • Handle: RePEc:inm:oropre:v:22:y:1974:i:5:p:1051-1066
    DOI: 10.1287/opre.22.5.1051
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    Citations

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    Cited by:

    1. Rouba Ibrahim, 2018. "Sharing delay information in service systems: a literature survey," Queueing Systems: Theory and Applications, Springer, vol. 89(1), pages 49-79, June.
    2. Ali K. Parlaktürk & Sunil Kumar, 2004. "Self-Interested Routing in Queueing Networks," Management Science, INFORMS, vol. 50(7), pages 949-966, July.
    3. Zhongbin Wang & Yunan Liu & Lei Fang, 2022. "Pay to activate service in vacation queues," Production and Operations Management, Production and Operations Management Society, vol. 31(6), pages 2609-2627, June.
    4. 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.
    5. Parlakturk, Ali & Kumar, Sunil, 2004. "Self-Interested Routing in Queueing Networks," Research Papers 1782r, Stanford University, Graduate School of Business.
    6. 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.
    7. Gabi Hanukov & Shoshana Anily & Uri Yechiali, 2020. "Ticket queues with regular and strategic customers," Queueing Systems: Theory and Applications, Springer, vol. 95(1), pages 145-171, June.
    8. Alessandro Arlotto & Andrew E. Frazelle & Yehua Wei, 2019. "Strategic Open Routing in Service Networks," Management Science, INFORMS, vol. 65(2), pages 735-750, February.
    9. Roei Engel & Refael Hassin, 2017. "Customer equilibrium in a single-server system with virtual and system queues," Queueing Systems: Theory and Applications, Springer, vol. 87(1), pages 161-180, October.
    10. 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.
    11. Olga Boudali & Antonis Economou, 2013. "The effect of catastrophes on the strategic customer behavior in queueing systems," Naval Research Logistics (NRL), John Wiley & Sons, vol. 60(7), pages 571-587, October.
    12. Gad Allon & Eran Hanany, 2012. "Cutting in Line: Social Norms in Queues," Management Science, INFORMS, vol. 58(3), pages 493-506, March.

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