A Stackelberg game is used to study the service pricing and the strategic behavior of customers in an unreliable and totally unobservable M/M/1 queue under a reward-cost structure. At the first stage, the server manager, acting as a leader, chooses a service price and, at the second stage, a customer, arriving at the system and acting as a follower, chooses to join the system or an outside opportunity, knowing only the service price imposed by the server manager and the system parameters. We show that the constructed game admits an equilibrium and we give explicit forms of server manager and customers equilibrium behavioral strategies. The results of the proposed model show that the assumption that customers are risk-neutral is fundamental for the standard approach usually used. Moreover, we determine the socially optimal price that maximizes the social welfare and we compare it to the Stackelberg equilibrium. We illustrate, by numerical examples, the effect of some system parameters on the equilibrium service price and the revenue of the server manager.
Keywords: Queueing, unreliable server, pricing, strategic behavior, Stackelberg game, equilibrium
@article{RO_2022__56_1_213_0,
author = {Meziani, Kamel and Rahmoune, Fazia and Radjef, Mohammed Said},
title = {The service pricing strategies and the strategic behavior of customers in an unobservable {Markovian} queue with unreliable server},
journal = {RAIRO. Operations Research},
pages = {213--237},
year = {2022},
publisher = {EDP-Sciences},
volume = {56},
number = {1},
doi = {10.1051/ro/2021181},
mrnumber = {4376284},
language = {en},
url = {https://www.numdam.org/articles/10.1051/ro/2021181/}
}
TY - JOUR AU - Meziani, Kamel AU - Rahmoune, Fazia AU - Radjef, Mohammed Said TI - The service pricing strategies and the strategic behavior of customers in an unobservable Markovian queue with unreliable server JO - RAIRO. Operations Research PY - 2022 SP - 213 EP - 237 VL - 56 IS - 1 PB - EDP-Sciences UR - https://www.numdam.org/articles/10.1051/ro/2021181/ DO - 10.1051/ro/2021181 LA - en ID - RO_2022__56_1_213_0 ER -
%0 Journal Article %A Meziani, Kamel %A Rahmoune, Fazia %A Radjef, Mohammed Said %T The service pricing strategies and the strategic behavior of customers in an unobservable Markovian queue with unreliable server %J RAIRO. Operations Research %D 2022 %P 213-237 %V 56 %N 1 %I EDP-Sciences %U https://www.numdam.org/articles/10.1051/ro/2021181/ %R 10.1051/ro/2021181 %G en %F RO_2022__56_1_213_0
Meziani, Kamel; Rahmoune, Fazia; Radjef, Mohammed Said. The service pricing strategies and the strategic behavior of customers in an unobservable Markovian queue with unreliable server. RAIRO. Operations Research, Tome 56 (2022) no. 1, pp. 213-237. doi: 10.1051/ro/2021181
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