Pricing, routing, and incentive compatibility in multiserver queues

Pricing, routing, and incentive compatibility in multiserver queues

0.00 Avg rating0 Votes
Article ID: iaor19982483
Country: Netherlands
Volume: 89
Issue: 2
Start Page Number: 226
End Page Number: 236
Publication Date: Mar 1996
Journal: European Journal of Operational Research
Authors:
Keywords: congestion, incentives
Abstract:

This paper studies pricing and incentive issues in the assignment of customers to servers in a system that suffers congestion effects. When customers have private information about their waiting costs, a system administrator who wishes to maximize steady-state net benefits per unit of time (i.e. total benefits from service minus total waiting costs) may do so using a pricing and routing scheme that is incentive compatible; that is, no customer has any incentive to reveal his private information untruthfully. When the system administrator wants to maximize toll revenue, the optimal scheme involves higher tolls, and hence lower congestion, than is socially optimal.

Reviews

Required fields are marked *. Your email address will not be published.