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Transient Analysis for a Queuing System with Impatient Customers and Its Applications to the Pricing Strategy of a Video Website

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  • Qihui Bu

    (School of Science, Nanjing University of Posts and Telecommunications, Nanjing 210023, China)

Abstract

In this paper, we consider a queuing system with impatient customers, which includes infinite servers and two types of customers. During the service process, Type-1 customers may leave the system or upgrade to be Type-2 customers due to their impatience. By solving the partial differential equations, we obtain the generating functions of the transient distribution of the queue length, and many stationary performance measures are further derived. Then, as an application, we formulate an expected profit function for a video website, and maximize it by determining the optimal pricing strategy. Finally, numerical examples are provided to demonstrate the impacts of parameters on the optimal website profit.

Suggested Citation

  • Qihui Bu, 2024. "Transient Analysis for a Queuing System with Impatient Customers and Its Applications to the Pricing Strategy of a Video Website," Mathematics, MDPI, vol. 12(13), pages 1-14, June.
    • Handle: RePEc:gam:jmathe:v:12:y:2024:i:13:p:2030-:d:1425674
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    References listed on IDEAS

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    9. Mark D. Manuszak & Krzysztof Wozniak, 2017. "The Impact of Price Controls in Two-sided Markets : Evidence from US Debit Card Interchange Fee Regulation," Finance and Economics Discussion Series 2017-074, Board of Governors of the Federal Reserve System (U.S.).
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