| Article ID: | iaor20102897 |
| Volume: | 36 |
| Issue: | 6 |
| Start Page Number: | 700 |
| End Page Number: | 704 |
| Publication Date: | Nov 2008 |
| Journal: | Operations Research Letters |
| Authors: | Burnetas Apostolos, Printezis Antonios |
We study a system where the service provider offers priority options. We identify the optimal option pricing policy, by deriving the optimal number a customer would buy and the customer's exercise policy as a function of system congestion, options remaining, time to expiration and possibility of balking.