A Hotelling queue model with probabilistic service
Xu,Xiaoya1; Lian,Zhaotong2; Li,Xin3; Guo,Pengfei4
Source PublicationOperations Research Letters
AbstractWe study the pricing problem for a firm with two servers where heterogeneous customers can choose between deterministic service and probabilistic service. We find that different queueing priority policies do not affect the firm's revenue but affect the firm's optimal pricing strategies. Specifically, when the flexible customers (who choose probabilistic service) have a high priority, the optimal price of the deterministic service could be lower than the one of the probabilistic service in a small or moderate market.
KeywordHotelling model Priority Probabilistic service Queueing
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Cited Times [WOS]:4   [WOS Record]     [Related Records in WOS]
Document TypeJournal article
CollectionUniversity of Macau
Corresponding AuthorLi,Xin
Affiliation1.Guangdong University of Finance & Economics,School of Business Administration,,China
2.Faculty of Business Administration,University of Macau,,Macao
3.School of Business,Macau University of Science and Technology,,Macao
4.Faculty of Business,Hong Kong Polytechnic University,,Hong Kong
Recommended Citation
GB/T 7714
Xu,Xiaoya,Lian,Zhaotong,Li,Xin,et al. A Hotelling queue model with probabilistic service[J]. Operations Research Letters,2016,44(5):592-597.
APA Xu,Xiaoya,Lian,Zhaotong,Li,Xin,&Guo,Pengfei.(2016).A Hotelling queue model with probabilistic service.Operations Research Letters,44(5),592-597.
MLA Xu,Xiaoya,et al."A Hotelling queue model with probabilistic service".Operations Research Letters 44.5(2016):592-597.
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