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Strategic customer behavior and optimal policies in a passenger–taxi double-ended queueing system with multiple access points and nonzero matching times

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  • Hung Q. Nguyen

    (University of Tsukuba)

  • Tuan Phung-Duc

    (University of Tsukuba)

Abstract

This paper considers an observable double-ended queueing system of passengers and taxis, where matching times follow an exponential distribution. We assume that passengers are strategic and decide to join the queue only if their expected utility is nonnegative. We show that the strategy of passengers is represented by a unique vector of thresholds corresponding to different cases of the number of taxis observed in the system upon passenger arrival. Furthermore, we develop a heuristic algorithm to find an optimal range of fees to be levied on passengers to maximize social welfare or revenues.

Suggested Citation

  • Hung Q. Nguyen & Tuan Phung-Duc, 2022. "Strategic customer behavior and optimal policies in a passenger–taxi double-ended queueing system with multiple access points and nonzero matching times," Queueing Systems: Theory and Applications, Springer, vol. 102(3), pages 481-508, December.
    • Handle: RePEc:spr:queues:v:102:y:2022:i:3:d:10.1007_s11134-022-09786-3
    DOI: 10.1007/s11134-022-09786-3
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    References listed on IDEAS

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    Cited by:

    1. Xianyue Shi & Liwei Liu, 2023. "Equilibrium Joining Strategies in the Retrial Queue with Two Classes of Customers and Delayed Vacations," Methodology and Computing in Applied Probability, Springer, vol. 25(2), pages 1-27, June.

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