Rational Abandonment from Tele-Queues: Nonlinear Waiting Costs with Heterogeneous Preferences

Authors:
Nahum Shimkin;Avishai Mandelbaum
Affiliations:
Department of Electrical Engineering, Technion, Haifa 32000, Israel shimkin@ee.technion.ac.il;Department of Industrial Engineering, Technion, Haifa 32000, Israel avim@tx.technion.ac.il
Venue:
Queueing Systems: Theory and Applications
Year:
2004

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Abstract

We consider the modelling of abandonment from a queueing system by impatient customers. Within the proposed model, customers act rationally to maximise a utility function that weights service utility against expected waiting cost. Customers are heterogeneous, in the sense that their utility function parameters may vary across the customer population. The queue is assumed invisible to waiting customers, who do not obtain any information regarding their standing in the queue during their waiting period. Such circumstances apply, for example, in telephone centers or other remote service facilities, to which we refer as tele-queues. We analyse this decision model within a multi-server queue with impatient customers, and seek to characterise the Nash equilibria of this system. These equilibria may be viewed as stable operating points of the system, and determine the customer abandonment profile along with other system-wide performance measures. We provide conditions for the existence and uniqueness of the equilibrium, and suggest procedures for its computation. We also suggest a notion of an equilibrium based on sub-optimal decisions, the myopic equilibrium, which enjoys favourable analytical properties. Some concrete examples are provided to illustrate the modelling approach and analysis. The present paper supplements previous ones which were restricted to linear waiting costs or homogeneous customer population.