A Hotelling queue model with probabilistic service

Xiaoya Xu; Zhaotong Lian; Xin Li; Pengfei Guo

doi:10.1016/j.orl.2016.07.003

A Hotelling queue model with probabilistic service

Xiaoya Xu, Zhaotong Lian, Xin Li, Pengfei Guo

Research output: Journal article publication › Journal article › Academic research › peer-review

17 Citations (Scopus)

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.

Original language	English
Pages (from-to)	592-597
Number of pages	6
Journal	Operations Research Letters
Volume	44
Issue number	5
DOIs	https://doi.org/10.1016/j.orl.2016.07.003
Publication status	Published - 1 Sept 2016

Keywords

Hotelling model
Priority
Probabilistic service
Queueing

ASJC Scopus subject areas

Software
Management Science and Operations Research
Industrial and Manufacturing Engineering
Applied Mathematics

More information

10.1016/j.orl.2016.07.003

Cite this

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KW - Queueing

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A Hotelling queue model with probabilistic service

Abstract

Keywords

ASJC Scopus subject areas

More information

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