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INFORMATION AND UNCERTAINTY IN A QUEUING SYSTEM

Published online by Cambridge University Press:  08 August 2007

Refael Hassin
Affiliation:
School of Mathematical Sciences Tel-Aviv University Tel-Aviv 69978, Israel E-mail: [email protected]; http://www.math.tau.ac.il/~hassin/

Abstract

This article deals with the effect of information and uncertainty on profits in an unobservable single-server queuing system. We consider scenarios in which the service rate, the service quality, or the waiting conditions are random variables that are known to the server but not to the customers. We ask whether the server is motivated to reveal these parameters. We investigate the structure of the profit function and its sensitivity to the variance of the random variable. We consider and compare variations of the model according to whether the server can modify the service price after observing the realization of the random variable.

Type
Research Article
Copyright
2007 Cambridge University Press

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