Dynamic pricing and scheduling in a multi‐class single‐server queueing system

Dynamic pricing and scheduling in a multi‐class single‐server queueing system

0.00 Avg rating0 Votes
Article ID: iaor20115773
Volume: 67
Issue: 4
Start Page Number: 305
End Page Number: 331
Publication Date: Apr 2011
Journal: Queueing Systems
Authors: , ,
Keywords: programming: markov decision
Abstract:

This paper investigates an optimal sequencing and dynamic pricing problem for a two‐class queueing system. Using a Markov Decision Process based model, we obtain structural characterizations of optimal policies. In particular, it is shown that the optimal pricing policy depends on the entire queue length vector but some monotonicity results prevail as the composition of this vector changes. A numerical study finds that static pricing policies may have significant suboptimality but simple dynamic pricing policies perform well in most situations.

Reviews

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 Your email address will not be published.