A Hotelling queue model with probabilistic service

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

9 Scopus Citations
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Author(s)

Detail(s)

Original languageEnglish
Pages (from-to)592-597
Journal / PublicationOperations Research Letters
Volume44
Issue number5
Online published11 Jul 2016
Publication statusPublished - Sep 2016
Externally publishedYes

Abstract

We study the pricing problem for a firm with two servers where heterogeneous customers can choose between deterministic service and probabilistic service. We find that different queueing priority policies do not affect the firm's revenue but affect the firm's optimal pricing strategies. Specifically, when the flexible customers (who choose probabilistic service) have a high priority, the optimal price of the deterministic service could be lower than the one of the probabilistic service in a small or moderate market. © 2016 Elsevier B.V.

Research Area(s)

  • Hotelling model, Priority, Probabilistic service, Queueing

Citation Format(s)

A Hotelling queue model with probabilistic service. / Xu, Xiaoya; Lian, Zhaotong; Li, Xin; Guo, Pengfei.

In: Operations Research Letters, Vol. 44, No. 5, 09.2016, p. 592-597.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review