IDEAS home Printed from https://ideas.repec.org/a/spr/queues/v96y2020i3d10.1007_s11134-020-09671-x.html
   My bibliography  Save this article

Equilibrium in a finite capacity M/M/1 queue with unknown service rates consisting of strategic and non-strategic customers

Author

Listed:
  • S. Srivatsa Srinivas

    (Indian Institute of Technology Madras)

  • Rahul R. Marathe

    (Indian Institute of Technology Madras)

Abstract

We consider an $$M/M/1/{\overline{N}}$$ M / M / 1 / N ¯ observable non-customer-intensive service queueing system with unknown service rates consisting of strategic impatient customers who make balking decisions and non-strategic patient customers who do not make any decision. In the queueing game amongst the impatient customers, we show that there exists at least one pure threshold strategy equilibrium in the presence of patient customers. As multiple pure threshold strategy equilibria exist in certain cases, we consider the minimal pure threshold strategy equilibrium in our sensitivity analysis. We find that the likelihood ratio of a fast server to a slow server in an empty queue is monotonically decreasing in the proportion of impatient customers and monotonically increasing in the waiting area capacity. Further, we find that the minimal pure threshold strategy equilibrium is non-increasing in the proportion of impatient customers and non-decreasing in the waiting area capacity. We also show that at least one pure threshold strategy equilibrium exists when the waiting area capacity is infinite.

Suggested Citation

  • S. Srivatsa Srinivas & Rahul R. Marathe, 2020. "Equilibrium in a finite capacity M/M/1 queue with unknown service rates consisting of strategic and non-strategic customers," Queueing Systems: Theory and Applications, Springer, vol. 96(3), pages 329-356, December.
  • Handle: RePEc:spr:queues:v:96:y:2020:i:3:d:10.1007_s11134-020-09671-x
    DOI: 10.1007/s11134-020-09671-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11134-020-09671-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s11134-020-09671-x?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Guanlian Xiao & Ming Dong & Jing Li & Liya Sun, 2017. "Scheduling routine and call-in clinical appointments with revisits," International Journal of Production Research, Taylor & Francis Journals, vol. 55(6), pages 1767-1779, March.
    2. Antonis Economou & Spyridoula Kanta, 2011. "Equilibrium customer strategies and social–profit maximization in the single‐server constant retrial queue," Naval Research Logistics (NRL), John Wiley & Sons, vol. 58(2), pages 107-122, March.
    3. Guo, Pengfei & Zipkin, Paul, 2009. "The effects of the availability of waiting-time information on a balking queue," European Journal of Operational Research, Elsevier, vol. 198(1), pages 199-209, October.
    4. Sumita, Ushio & Masuda, Yasushi & Yamakawa, Shigetaka, 2001. "Optimal internal pricing and capacity planning for service facility with finite buffer," European Journal of Operational Research, Elsevier, vol. 128(1), pages 192-205, January.
    5. Refael Hassin & Moshe Haviv, 1997. "Equilibrium Threshold Strategies: The Case of Queues with Priorities," Operations Research, INFORMS, vol. 45(6), pages 966-973, December.
    6. Refael Hassin & Ricky Roet-Green, 2017. "The Impact of Inspection Cost on Equilibrium, Revenue, and Social Welfare in a Single-Server Queue," Operations Research, INFORMS, vol. 65(3), pages 804-820, June.
    7. Naor, P, 1969. "The Regulation of Queue Size by Levying Tolls," Econometrica, Econometric Society, vol. 37(1), pages 15-24, January.
    8. Ronald W. Wolff, 1982. "Poisson Arrivals See Time Averages," Operations Research, INFORMS, vol. 30(2), pages 223-231, April.
    9. Yan Liu & William L. Cooper, 2015. "Optimal Dynamic Pricing with Patient Customers," Operations Research, INFORMS, vol. 63(6), pages 1307-1319, December.
    10. Olga Boudali & Antonis Economou, 2013. "The effect of catastrophes on the strategic customer behavior in queueing systems," Naval Research Logistics (NRL), John Wiley & Sons, vol. 60(7), pages 571-587, October.
    11. Laurens Debo & Senthil Veeraraghavan, 2014. "Equilibrium in Queues Under Unknown Service Times and Service Value," Operations Research, INFORMS, vol. 62(1), pages 38-57, February.
    12. Laurens G. Debo & L. Beril Toktay & Luk N. Van Wassenhove, 2008. "Queuing for Expert Services," Management Science, INFORMS, vol. 54(8), pages 1497-1512, August.
    13. Laurens G. Debo & Christine Parlour & Uday Rajan, 2012. "Signaling Quality via Queues," Management Science, INFORMS, vol. 58(5), pages 876-891, May.
    Full references (including those not matched with items on IDEAS)

    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. Luyi Yang & Laurens G. Debo & Varun Gupta, 2019. "Search Among Queues Under Quality Differentiation," Management Science, INFORMS, vol. 65(8), pages 3605-3623, August.
    2. Hassin, Refael & Roet-Green, Ricky, 2018. "Cascade equilibrium strategies in a two-server queueing system with inspection cost," European Journal of Operational Research, Elsevier, vol. 267(3), pages 1014-1026.
    3. Olga Bountali & Antonis Economou, 2019. "Equilibrium threshold joining strategies in partially observable batch service queueing systems," Annals of Operations Research, Springer, vol. 277(2), pages 231-253, June.
    4. Opher Baron & Antonis Economou & Athanasia Manou, 2022. "Increasing social welfare with delays: Strategic customers in the M/G/1 orbit queue," Production and Operations Management, Production and Operations Management Society, vol. 31(7), pages 2907-2924, July.
    5. Ming Hu & Yang Li & Jianfu Wang, 2018. "Efficient Ignorance: Information Heterogeneity in a Queue," Management Science, INFORMS, vol. 64(6), pages 2650-2671, June.
    6. Dimitrios Logothetis & Antonis Economou, 2023. "The impact of information on transportation systems with strategic customers," Production and Operations Management, Production and Operations Management Society, vol. 32(7), pages 2189-2206, July.
    7. Pengfei Guo & Moshe Haviv & Zhenwei Luo & Yulan Wang, 2022. "Optimal queue length information disclosure when service quality is uncertain," Production and Operations Management, Production and Operations Management Society, vol. 31(5), pages 1912-1927, May.
    8. Olga Boudali & Antonis Economou, 2013. "The effect of catastrophes on the strategic customer behavior in queueing systems," Naval Research Logistics (NRL), John Wiley & Sons, vol. 60(7), pages 571-587, October.
    9. 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.
    10. Qiao‐Chu He & Ying‐Ju Chen & Rhonda Righter, 2020. "Learning with Projection Effects in Service Operations Systems," Production and Operations Management, Production and Operations Management Society, vol. 29(1), pages 90-100, January.
    11. Caner Canyakmaz & Tamer Boyaci, 2018. "Queueing systems with rationally inattentive customers," ESMT Research Working Papers ESMT-18-04_R1, ESMT European School of Management and Technology, revised 01 Oct 2020.
    12. Leon Yang Chu & Zhixi Wan & Dongyuan Zhan, 2018. "Harnessing the Double-edged Sword via Routing: Information Provision on Ride-hailing Platforms," Working Papers 18-04, NET Institute.
    13. Rouba Ibrahim, 2018. "Sharing delay information in service systems: a literature survey," Queueing Systems: Theory and Applications, Springer, vol. 89(1), pages 49-79, June.
    14. David Lingenbrink & Krishnamurthy Iyer, 2019. "Optimal Signaling Mechanisms in Unobservable Queues," Operations Research, INFORMS, vol. 67(5), pages 1397-1416, September.
    15. Laurens Debo & Senthil Veeraraghavan, 2014. "Equilibrium in Queues Under Unknown Service Times and Service Value," Operations Research, INFORMS, vol. 62(1), pages 38-57, February.
    16. Laurens G. Debo & Christine Parlour & Uday Rajan, 2012. "Signaling Quality via Queues," Management Science, INFORMS, vol. 58(5), pages 876-891, May.
    17. Nur Sunar & Yichen Tu & Serhan Ziya, 2021. "Pooled vs. Dedicated Queues when Customers Are Delay-Sensitive," Management Science, INFORMS, vol. 67(6), pages 3785-3802, June.
    18. Caner Canyakmaz & Tamer Boyaci, 2018. "Opaque queues: Service systems with rationally inattentive customers," ESMT Research Working Papers ESMT-18-04, ESMT European School of Management and Technology.
    19. Zhongbin Wang & Yunan Liu & Lei Fang, 2022. "Pay to activate service in vacation queues," Production and Operations Management, Production and Operations Management Society, vol. 31(6), pages 2609-2627, June.
    20. İşlier, Zeynep Gökçe & Güllü, Refik, 2024. "On strategic customers with correlated utility attributes: Effects and information benefits," European Journal of Operational Research, Elsevier, vol. 313(1), pages 258-269.

    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:spr:queues:v:96:y:2020:i:3:d:10.1007_s11134-020-09671-x. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.