| Article ID: | iaor1996129 |
| Country: | United States |
| Volume: | 41 |
| Issue: | 1 |
| Start Page Number: | 163 |
| End Page Number: | 173 |
| Publication Date: | Jan 1995 |
| Journal: | Management Science |
| Authors: | Hassin Refael |
| Keywords: | service, queues: theory |
A bidding mechanism for determining priorities in a service system is analyzed. It is shown that when all customers have the same exponential service demand, this mechanism induces both the socially optimal arrival process and the service order. It is also shown that the profit-maximizing service rate in this model is smaller than or equal to the socially optimal one.