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Might randomization in queue discipline be useful when waiting cost is a concave function of waiting time?

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  • Caulkins, Jonathan P.

Abstract

This paper suggests that introducing randomization in queue discipline might be welfare enhancing in certain queues for which the cost of waiting is a concave function of waiting time. Concavity can make increased variability in waiting times good not bad for aggregate customer welfare. Such concavity may occur if the costs of waiting asymptotically approach some maximum or if the customer incurs a fixed cost if there is any wait at all. As examples, cost might asymptotically approach a maximum for patients seeking organ transplants who will not live beyond a certain threshold time, and fixed costs could pertain for knowledge workers seeking a piece of information that is required to proceed with their current task, so any delay creates a "set up charge" associated with switching tasks.

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  • Caulkins, Jonathan P., 2010. "Might randomization in queue discipline be useful when waiting cost is a concave function of waiting time?," Socio-Economic Planning Sciences, Elsevier, vol. 44(1), pages 19-24, March.
    • Handle: RePEc:eee:soceps:v:44:y:2010:i:1:p:19-24
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    Cited by:

    1. Hossein Abouee‐Mehrizi & Ata Ghareaghaji Zare & Renata A. Konrad, 2022. "Pricing in Service Systems with Rational Balking and Abandonment of Time‐Sensitive Customers," Production and Operations Management, Production and Operations Management Society, vol. 31(2), pages 495-510, February.
    2. W. Rogiest & K. Laevens & J. Walraevens & H. Bruneel, 2015. "Random-order-of-service for heterogeneous customers: waiting time analysis," Annals of Operations Research, Springer, vol. 226(1), pages 527-550, March.
    3. Souvik Ghosh & A. D. Banik, 2018. "Computing conditional sojourn time of a randomly chosen tagged customer in a $$\textit{BMAP/MSP/}1$$ BMAP / MSP / 1 queue under random order service discipline," Annals of Operations Research, Springer, vol. 261(1), pages 185-206, February.
    4. Huh, Woonghee Tim & Lee, Jaywon & Park, Heesang & Park, Kun Soo, 2019. "The potty parity problem: Towards gender equality at restrooms in business facilities," Socio-Economic Planning Sciences, Elsevier, vol. 68(C).

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