A Hotelling queue model with probabilistic service
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
Author(s)
Detail(s)
| Original language | English |
|---|---|
| Pages (from-to) | 592-597 |
| Journal / Publication | Operations Research Letters |
| Volume | 44 |
| Issue number | 5 |
| Online published | 11 Jul 2016 |
| Publication status | Published - Sept 2016 |
| Externally published | Yes |
Link(s)
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 et al.
In: Operations Research Letters, Vol. 44, No. 5, 09.2016, p. 592-597.
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 journal › peer-review
