Unfair Consequence of Fair Competition in Service Systems---An Agent-Based and Queueing Approach

  • Authors:
  • Wai Kin Victor Chan;Baojun Gao

  • Affiliations:
  • Department of Industrial and Systems Engineering, Rensselaer Polytechnic Institute, Troy, New York 12180;School of Economics and Management, Wuhan University, Wuhan, Hubei Province 430072, People's Republic of China

  • Venue:
  • Service Science
  • Year:
  • 2013

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Abstract

This paper considers the competition of service centers within a service system. Each service center is modeled as a multiple-server queue. Service centers compete with each other in a fair manner and adjust their service resources number of servers to accommodate the demand obtained from the competition. An agent-based approach is used to model the competition and adjustment processes. Our objective is to study the size distribution of service centers under a fair competition, i.e., to answer the question, will the size distribution be uniform, normal, or skewed? It turns out that a skewed distribution e.g., power law distribution is obtained. Two data sets of hospital sizes are analyzed and are found to have a skewed distribution. An analytical argument is provided to explain how a fair competition could give rise to a skewed i.e., unfair size distribution.