IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v50y2004i7p949-966.html
   My bibliography  Save this article

Self-Interested Routing in Queueing Networks

Author

Listed:
  • Ali K. Parlaktürk

    (Graduate School of Business, Stanford University, Stanford, California 94305)

  • Sunil Kumar

    (Graduate School of Business, Stanford University, Stanford, California 94305)

Abstract

We study self-interested routing in stochastic networks, taking into account the discrete stochastic dynamics of such networks. We analyze a two-station multiclass queueing network in which the system manager chooses the scheduling rule and individual customers choose routes in a self-interested manner. We show that this network can be unstable in Nash equilibrium under some scheduling rules. We also design a nontrivial scheduling rule that negates the performance degradation resulting from self-interested routing and achieves a Nash equilibrium with performance comparable to the first-best solution.

Suggested Citation

  • Ali K. Parlaktürk & Sunil Kumar, 2004. "Self-Interested Routing in Queueing Networks," Management Science, INFORMS, vol. 50(7), pages 949-966, July.
  • Handle: RePEc:inm:ormnsc:v:50:y:2004:i:7:p:949-966
    DOI: 10.1287/mnsc.1040.0251
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.1040.0251
    Download Restriction: no

    File URL: https://libkey.io/10.1287/mnsc.1040.0251?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Colin E. Bell & Shaler Stidham, Jr., 1983. "Individual versus Social Optimization in the Allocation of Customers to Alternative Servers," Management Science, INFORMS, vol. 29(7), pages 831-839, July.
    2. Eitan Altman & Nahum Shimkin, 1998. "Individual Equilibrium and Learning in Processor Sharing Systems," Operations Research, INFORMS, vol. 46(6), pages 776-784, December.
    3. Constantinos Maglaras & Assaf Zeevi, 2005. "Pricing and Design of Differentiated Services: Approximate Analysis and Structural Insights," Operations Research, INFORMS, vol. 53(2), pages 242-262, April.
    4. Ali Sharifnia, 1997. "Instability of the Join-the-Shortest-Queue and FCFS Policies in Queueing Systems and Their Stabilization," Operations Research, INFORMS, vol. 45(2), pages 309-314, April.
    5. Jan A. Van Mieghem, 2000. "Price and Service Discrimination in Queuing Systems: Incentive Compatibility of Gc\mu Scheduling," Management Science, INFORMS, vol. 46(9), pages 1249-1267, September.
    6. Pradeep Dubey, 1986. "Inefficiency of Nash Equilibria," Mathematics of Operations Research, INFORMS, vol. 11(1), pages 1-8, February.
    7. I. Adiri & U. Yechiali, 1974. "Optimal Priority-Purchasing and Pricing Decisions in Nonmonopoly and Monopoly Queues," Operations Research, INFORMS, vol. 22(5), pages 1051-1066, October.
    8. Naor, P, 1969. "The Regulation of Queue Size by Levying Tolls," Econometrica, Econometric Society, vol. 37(1), pages 15-24, January.
    9. Constantinos Maglaras & Assaf Zeevi, 2003. "Pricing and Capacity Sizing for Systems with Shared Resources: Approximate Solutions and Scaling Relations," Management Science, INFORMS, vol. 49(8), pages 1018-1038, August.
    10. Ward Whitt, 2003. "How Multiserver Queues Scale with Growing Congestion-Dependent Demand," Operations Research, INFORMS, vol. 51(4), pages 531-542, August.
    11. Ward Whitt, 1986. "Deciding Which Queue to Join: Some Counterexamples," Operations Research, INFORMS, vol. 34(1), pages 55-62, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lauren Xiaoyuan Lu & Jan A. Van Mieghem & R. Canan Savaskan, 2009. "Incentives for Quality Through Endogenous Routing," Manufacturing & Service Operations Management, INFORMS, vol. 11(2), pages 254-273, July.
    2. Michal Feldman & Tami Tamir, 2012. "Conflicting Congestion Effects in Resource Allocation Games," Operations Research, INFORMS, vol. 60(3), pages 529-540, June.
    3. Brooks, James D. & Kar, Koushik & Mendonça, David J., 2016. "Allocation of flows in closed bipartite queueing networks," European Journal of Operational Research, Elsevier, vol. 255(2), pages 333-344.
    4. Shiliang Cui & Xuanming Su & Senthil Veeraraghavan, 2019. "A Model of Rational Retrials in Queues," Operations Research, INFORMS, vol. 67(6), pages 1699-1718, November.
    5. Barış Ata & Anton Skaro & Sridhar Tayur, 2017. "OrganJet: Overcoming Geographical Disparities in Access to Deceased Donor Kidneys in the United States," Management Science, INFORMS, vol. 63(9), pages 2776-2794, September.
    6. Vasiliki Kostami & Amy R. Ward, 2009. "Managing Service Systems with an Offline Waiting Option and Customer Abandonment," Manufacturing & Service Operations Management, INFORMS, vol. 11(4), pages 644-656, November.
    7. René Caldentey & Lawrence M. Wein, 2006. "Revenue Management of a Make-to-Stock Queue," Operations Research, INFORMS, vol. 54(5), pages 859-875, October.
    8. Alessandro Arlotto & Andrew E. Frazelle & Yehua Wei, 2019. "Strategic Open Routing in Service Networks," Management Science, INFORMS, vol. 65(2), pages 735-750, February.
    9. Roberto Cominetti & José R. Correa & Nicolás E. Stier-Moses, 2009. "The Impact of Oligopolistic Competition in Networks," Operations Research, INFORMS, vol. 57(6), pages 1421-1437, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Parlakturk, Ali & Kumar, Sunil, 2004. "Self-Interested Routing in Queueing Networks," Research Papers 1782r, Stanford University, Graduate School of Business.
    2. Xuanming Su & Stefanos Zenios, 2004. "Patient Choice in Kidney Allocation: The Role of the Queueing Discipline," Manufacturing & Service Operations Management, INFORMS, vol. 6(4), pages 280-301, June.
    3. Costis Maglaras & John Yao & Assaf Zeevi, 2018. "Optimal Price and Delay Differentiation in Large-Scale Queueing Systems," Management Science, INFORMS, vol. 64(5), pages 2427-2444, May.
    4. Sunil Kumar & Ramandeep S. Randhawa, 2010. "Exploiting Market Size in Service Systems," Manufacturing & Service Operations Management, INFORMS, vol. 12(3), pages 511-526, September.
    5. Albert Y. Ha, 2001. "Optimal Pricing That Coordinates Queues with Customer-Chosen Service Requirements," Management Science, INFORMS, vol. 47(7), pages 915-930, July.
    6. Constantinos Maglaras & Assaf Zeevi, 2004. "Diffusion Approximations for a Multiclass Markovian Service System with “Guaranteed” and “Best-Effort” Service Levels," Mathematics of Operations Research, INFORMS, vol. 29(4), pages 786-813, November.
    7. Barış Ata & Tava Lennon Olsen, 2009. "Near-Optimal Dynamic Lead-Time Quotation and Scheduling Under Convex-Concave Customer Delay Costs," Operations Research, INFORMS, vol. 57(3), pages 753-768, June.
    8. Gad Allon & Itai Gurvich, 2010. "Pricing and Dimensioning Competing Large-Scale Service Providers," Manufacturing & Service Operations Management, INFORMS, vol. 12(3), pages 449-469, August.
    9. Olga Bountali & Antonis Economou, 2019. "Strategic customer behavior in a two-stage batch processing system," Queueing Systems: Theory and Applications, Springer, vol. 93(1), pages 3-29, October.
    10. Philipp Afèche, 2013. "Incentive-Compatible Revenue Management in Queueing Systems: Optimal Strategic Delay," Manufacturing & Service Operations Management, INFORMS, vol. 15(3), pages 423-443, July.
    11. Philipp Afèche & J. Michael Pavlin, 2016. "Optimal Price/Lead-Time Menus for Queues with Customer Choice: Segmentation, Pooling, and Strategic Delay," Management Science, INFORMS, vol. 62(8), pages 2412-2436, August.
    12. Philipp Afèche & Opher Baron & Yoav Kerner, 2013. "Pricing Time-Sensitive Services Based on Realized Performance," Manufacturing & Service Operations Management, INFORMS, vol. 15(3), pages 492-506, July.
    13. Philipp Afèche & Opher Baron & Joseph Milner & Ricky Roet-Green, 2019. "Pricing and Prioritizing Time-Sensitive Customers with Heterogeneous Demand Rates," Operations Research, INFORMS, vol. 67(4), pages 1184-1208, July.
    14. Dongyuan Zhan & Amy R. Ward, 2019. "Staffing, Routing, and Payment to Trade off Speed and Quality in Large Service Systems," Operations Research, INFORMS, vol. 67(6), pages 1738-1751, November.
    15. S. Rao & E. R. Petersen, 1998. "Optimal Pricing of Priority Services," Operations Research, INFORMS, vol. 46(1), pages 46-56, February.
    16. Zhao, Chen & Wang, Zhongbin, 2023. "The impact of line-sitting on a two-server queueing system," European Journal of Operational Research, Elsevier, vol. 308(2), pages 782-800.
    17. Sarang Deo & Itai Gurvich, 2011. "Centralized vs. Decentralized Ambulance Diversion: A Network Perspective," Management Science, INFORMS, vol. 57(7), pages 1300-1319, July.
    18. Ramandeep S. Randhawa & Sunil Kumar, 2008. "Usage Restriction and Subscription Services: Operational Benefits with Rational Users," Manufacturing & Service Operations Management, INFORMS, vol. 10(3), pages 429-447, December.
    19. Alessandro Arlotto & Andrew E. Frazelle & Yehua Wei, 2019. "Strategic Open Routing in Service Networks," Management Science, INFORMS, vol. 65(2), pages 735-750, February.
    20. Cary Deck & Erik O Kimbrough & Steeve Mongrain, 2014. "Paying for Express Checkout: Competition and Price Discrimination in Multi-Server Queuing Systems," PLOS ONE, Public Library of Science, vol. 9(3), pages 1-13, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:50:y:2004:i:7:p:949-966. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.