Strategic Revenue Management of Preemptive versus Non-Preemptive Queues
Computer Science and Game Theory
2020-07-15 v1
Abstract
Consider a two-class unobservable priority queue, with Poisson arrivals, generally distributed service, and strategic customers. Customers are charged a fee when joining the premium class. We analyze the maximum revenue achievable under the non-preemptive (NP) and preemptive-resume (PR) policies, and show that a provider is always better off implementing the PR policy. Further, the maximum revenue under PR is sometimes achieved when only a fraction of the customers join the premium class.
Keywords
Cite
@article{arxiv.2007.06764,
title = {Strategic Revenue Management of Preemptive versus Non-Preemptive Queues},
author = {Jonathan Chamberlain and David Starobinski},
journal= {arXiv preprint arXiv:2007.06764},
year = {2020}
}
Comments
Submitted for publication, 8 pages