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A Hotelling queue model with probabilistic service
Xiaoya Xu1; Zhaotong Lian2; Xin Li3; Pengfei Guo4
2016-09
Source PublicationOperations Research Letters
ABS Journal Level2
ISSN0167-6377
Volume44Issue:5Pages:592-597
Abstract

We 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
DOI10.1016/j.orl.2016.07.003
URLView the original
Indexed BySCIE ; SSCI
Language英語English
WOS Research AreaOperations Research & Management Science
WOS SubjectOperations Research & Management Science
WOS IDWOS:000384854700005
PublisherELSEVIER SCIENCE BV, PO BOX 211, 1000 AE AMSTERDAM, NETHERLANDS
Scopus ID2-s2.0-84978870261
Fulltext Access
Citation statistics
Document TypeJournal article
CollectionDEPARTMENT OF ACCOUNTING AND INFORMATION MANAGEMENT
University of Macau
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
Xiaoya Xu,Zhaotong Lian,Xin Li,et al. A Hotelling queue model with probabilistic service[J]. Operations Research Letters, 2016, 44(5), 592-597.
APA Xiaoya Xu., Zhaotong Lian., Xin Li., & Pengfei Guo (2016). A Hotelling queue model with probabilistic service. Operations Research Letters, 44(5), 592-597.
MLA Xiaoya Xu,et al."A Hotelling queue model with probabilistic service".Operations Research Letters 44.5(2016):592-597.
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