Name
Abstract | ||
|---|---|---|
We model a two-tier queuing system with free and toll service options as two parallel M/M/1 servers. We solve for the welfare-maximizing toll service capacity and toll subject to the constraint that the toll service cover its costs. If the free and toll services are both used in equilibrium, a larger free-service capacity implies longer expected waiting time for the free service and lower welfare: an analogue to the Downs-Thomson paradox in transportation economics. The paradox is caused by the presence of scale economies in the toll service combined with the requirement that it be self-financing. |
Year | DOI | Venue |
|---|---|---|
2014 | 10.1287/msom.2014.0476 | M&SOM-MANUFACTURING & SERVICE OPERATIONS MANAGEMENT |
Keywords | Field | DocType |
queuing system,two-tier service system,equilibrium arrival rates,pricing and capacity decisions,Downs-Thomson paradox | Economics,Transport economics,Toll,Microeconomics,Server,Downs–Thomson paradox,Queue management system,Welfare,Economies of scale,Operations management | Journal |
Volume | Issue | ISSN |
16 | 2 | 1523-4614 |
Citations | PageRank | References |
8 | 0.65 | 4 |
Authors | ||
3 | ||
Name | Order | Citations | PageRank |
|---|---|---|---|
| Pengfei Guo | 1 | 10 | 2.03 |
| Robin Lindsey | 2 | 8 | 0.65 |
| Zhe George Zhang | 3 | 424 | 44.55 |