Optimal pricing strategies and equilibrium behaviors in the discrete-time Geo/Geo/1 queueing system

초록

This study investigates the optimal pricing strategies of the server and the equilibrium behaviors of customer in the discrete-time Geo/Geo/1 queueing system. In this work, we consider two pricing models. The first one is called the ex-ante payment (EAP) scheme where the server charges a flat price for all services. The second one is called the ex-post payment (EPP) scheme where the server charges a price that is proportional to the time that a customer spends in the system. Based on the reward-cost structure, the server should make the optimal pricing decisions in order to maximize its expected profit per unit time in each payment scheme. This study also investigates customer’s equilibrium joining or balking behaviors under server’s optimal pricing strategies under the corresponding pricing models. Numerical experiments are conducted to help the server best select one between two pricing models. The work results could provide the managers with reference information on the pricing problem in the queueing system. © 2017 KIIE.

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