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Article: Optimal service capacity in a multiple-server queueing system: A game theory approach

TitleOptimal service capacity in a multiple-server queueing system: A game theory approach
Authors
KeywordsCapacity allocation
Competition
Markovian queueing systems
Nash equilibrium
Issue Date2009
PublisherAmerican Institute of Mathematical Sciences. The Journal's web site is located at http://aimsciences.org/journals/jimo/description.htm
Citation
Journal Of Industrial And Management Optimization, 2009, v. 6 n. 1, p. 73-102 How to Cite?
AbstractThe economic behavior of service providers in a competitive environment is a very important and interesting research topic. A two-server service network has been proposed by Kalai et al. [14] for this purpose. Their model actually aims at studying both the role and impact of service capacity in capturing larger market share. The market share is important in maximizing individual's long-run expected profit. A Markovian queueing system of two servers was employed in their model for the captured problem. The obvious advantage of such a model is that it is mathematically tractable. They then further formulated the problem as a two-person strategic game and analyzed the equilibrium solutions. The main aim of this paper is to extend the results of their two-server queueing model to the case of a general multiple-server queueing model. Here we will focus on the case when the queueing system is stable. It is found that when the marginal cost of service capacity is low relatively to the revenue per customer, a unique Nash equilibrium exists, in which all servers choose the same service capacity and the expected waiting times are finite.
Persistent Identifierhttp://hdl.handle.net/10722/75323
ISSN
2015 Impact Factor: 0.776
2015 SCImago Journal Rankings: 0.639
ISI Accession Number ID
Funding AgencyGrant Number
RGC7017/07P
HKU CRCG
Hung Hing Ying Physical Sciences Research Grant
HKU Strategic Research Theme Fund on Computational Sciences
National Natural Science Foundation of China70671020
70721001
70431003
60673159
Program for New Century Excellent Talents in UniversityNCET-05-0295
NCET-05-0289
Specialized Research Fund for the Doctoral Program of Higher Education20070145017
20060145012
Funding Information:

The authors would like to thank the two anonymous referees and the associate editor Prof. Wuyi Yue for their helpful comments and corrections. The preliminary version of the paper has been presented and appeared in the proceedings of the COMPLEX2009 conference, 23-25 Feb. 2009, Shanghai, China [9]. Ching's research is supported in part by the RGC Grant 7017/07P, HKU CRCG Grants, Hung Hing Ying Physical Sciences Research Grant and HKU Strategic Research Theme Fund on Computational Sciences. Huang's research is supported in part by National Natural Science Foundation of China (Project no. 70671020, 70721001, 70431003, 60673159), the Program for New Century Excellent Talents in University (Project no. NCET-05-0295, NCET-05-0289), Specialized Research Fund for the Doctoral Program of Higher Education (20070145017, 20060145012).

References

 

DC FieldValueLanguage
dc.contributor.authorChing, WKen_HK
dc.contributor.authorChoi, SMen_HK
dc.contributor.authorHuang, Men_HK
dc.date.accessioned2010-09-06T07:10:02Z-
dc.date.available2010-09-06T07:10:02Z-
dc.date.issued2009en_HK
dc.identifier.citationJournal Of Industrial And Management Optimization, 2009, v. 6 n. 1, p. 73-102en_HK
dc.identifier.issn1547-5816en_HK
dc.identifier.urihttp://hdl.handle.net/10722/75323-
dc.description.abstractThe economic behavior of service providers in a competitive environment is a very important and interesting research topic. A two-server service network has been proposed by Kalai et al. [14] for this purpose. Their model actually aims at studying both the role and impact of service capacity in capturing larger market share. The market share is important in maximizing individual's long-run expected profit. A Markovian queueing system of two servers was employed in their model for the captured problem. The obvious advantage of such a model is that it is mathematically tractable. They then further formulated the problem as a two-person strategic game and analyzed the equilibrium solutions. The main aim of this paper is to extend the results of their two-server queueing model to the case of a general multiple-server queueing model. Here we will focus on the case when the queueing system is stable. It is found that when the marginal cost of service capacity is low relatively to the revenue per customer, a unique Nash equilibrium exists, in which all servers choose the same service capacity and the expected waiting times are finite.en_HK
dc.languageengen_HK
dc.publisherAmerican Institute of Mathematical Sciences. The Journal's web site is located at http://aimsciences.org/journals/jimo/description.htmen_HK
dc.relation.ispartofJournal of Industrial and Management Optimizationen_HK
dc.subjectCapacity allocationen_HK
dc.subjectCompetitionen_HK
dc.subjectMarkovian queueing systemsen_HK
dc.subjectNash equilibriumen_HK
dc.titleOptimal service capacity in a multiple-server queueing system: A game theory approachen_HK
dc.typeArticleen_HK
dc.identifier.openurlhttp://library.hku.hk:4550/resserv?sid=HKU:IR&issn=1547-5816&volume=6&spage=73&epage=102&date=2010&atitle=Optimal+Service+Capacity+in+a+Multiple-server+Queueing+System:+A+Game+Theory+Approachen_HK
dc.identifier.emailChing, WK:wching@hku.hken_HK
dc.identifier.authorityChing, WK=rp00679en_HK
dc.description.naturelink_to_subscribed_fulltext-
dc.identifier.doi10.3934/jimo.2010.6.73en_HK
dc.identifier.scopuseid_2-s2.0-70949090089en_HK
dc.identifier.hkuros168184en_HK
dc.relation.referenceshttp://www.scopus.com/mlt/select.url?eid=2-s2.0-70949090089&selection=ref&src=s&origin=recordpageen_HK
dc.identifier.volume6en_HK
dc.identifier.issue1en_HK
dc.identifier.spage73en_HK
dc.identifier.epage102en_HK
dc.identifier.isiWOS:000272777400006-
dc.publisher.placeUnited Statesen_HK
dc.identifier.scopusauthoridChing, WK=13310265500en_HK
dc.identifier.scopusauthoridChoi, SM=26435077400en_HK
dc.identifier.scopusauthoridHuang, M=26643214600en_HK

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