Decentralized Regulation of a Queue
Management Science · 1995 · Volume 41 · Issue 1
Abstract
A bidding machanism for determining priorities in a service system is analyzed. It is shown that when all customers have the same exponential service demand, this mechanism induces both the socially optimal arrival process and the service order. It is also shown that the profit-maximizing service rate in this model is smaller than or equal to the socially optimal one.
Keywords
priorities in queues, regulation of a queue, optimal rate of service
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