Dynamic pricing to control loss systems with quality of service targets
Probability in the Engineering and Informational Sciences
Pointwise Stationary Fluid Models for Stochastic Processing Networks
Manufacturing & Service Operations Management
Cross-Selling in a Call Center with a Heterogeneous Customer Population
Operations Research
Queueing game models for differentiated services
GameNets'09 Proceedings of the First ICST international conference on Game Theory for Networks
Pricing and Dimensioning Competing Large-Scale Service Providers
Manufacturing & Service Operations Management
Exploiting Market Size in Service Systems
Manufacturing & Service Operations Management
State Space Collapse in Many-Server Diffusion Limits of Parallel Server Systems
Mathematics of Operations Research
Demand Information Sharing in Heterogeneous IT Services Environments
Journal of Management Information Systems
Large-Scale Service Marketplaces: The Role of the Moderating Firm
Management Science
Queueing Systems: Theory and Applications
Incentive-Compatible Revenue Management in Queueing Systems: Optimal Strategic Delay
Manufacturing & Service Operations Management
Pricing Time-Sensitive Services Based on Realized Performance
Manufacturing & Service Operations Management
The concert queueing game: strategic arrivals with waiting and tardiness costs
Queueing Systems: Theory and Applications
| Hi-index | 0.00 |
We consider a model of a service system that delivers two nonsubstitutable services to a market of heterogenous users. The first service is delivered subject to a "guaranteed" (G) processing rate, and the second is a "best-effort" (BE) type service in which residual capacity not allocated to the guaranteed class isshared among BE users. Users, in turn, are sensitive to both price and congestion-related effects. The service provider's objective is to optimally design the system so as to extract maximum revenues. The design variables in this problem consist of a pair of static prices for the two services, a policy that controls admission of G users into the system, and the mechanism by which users are informed of the state of congestion in the system. Because these objectives are difficult to address using exact analysis, we pursue approximations that are tractable and lead to structural insights. Specifically, we first solve a deterministic relaxation of the original objective to obtain a "fluid-optimal" solution that is subsequently evaluated and refined to account for stochastic fluctuations. Using diffusion limits, we derive approximations that yield the following structural results: (1) pricing rules derived from the deterministic analysis are "almost" optimal, (2) the optimal operational regime for the system is close to heavy traffic, and (3) real-time congestion notification results in increased revenues. Numerical results illustrate the accuracy of the proposed approximations and validate the aforementioned structural insights.