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Self-Interested Routing in Queueing Networks

Author

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  • Parlakturk, Ali

    (Stanford U)

  • Kumar, Sunil

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 used, 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 non-trivial scheduling rule that negates the performance degradation due to self-interested routing and achieves a Nash equilibrium with performance comparable to the first-best solution.

Suggested Citation

  • Parlakturk, Ali & Kumar, Sunil, 2004. "Self-Interested Routing in Queueing Networks," Research Papers 1782r, Stanford University, Graduate School of Business.
  • Handle: RePEc:ecl:stabus:1782r
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    File URL: http://gsbapps.stanford.edu/researchpapers/library/RP1782R.pdf
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    References listed on IDEAS

    as
    1. Naor, P, 1969. "The Regulation of Queue Size by Levying Tolls," Econometrica, Econometric Society, vol. 37(1), pages 15-24, January.
    2. 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.
    3. 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.
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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, 2006. "Incentives for Quality through Endogenous Routing," Discussion Papers 1436, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    3. 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.
    4. 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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