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Queue systems with balking: A stochastic model of price discrimination. (English) Zbl 0571.90008

Queuing systems with balking can explain the role of uncertainty and capacity in the behaviour of a monopoly [see A. de Vany, J. Polit. Econ. 84, 523–541 (1976)] and a duopoly [see the author, J. Business 53, 151–164 (1980)], when there is no distinction between customers. Here, customers are distinguished by their impatience, by their expectation of alternative service, and by priority classifications defined by customer objectives. Assuming profit-maximizing behaviour by the firm, the resulting service rules demonstrate the usual price discrimination by the monopolist.

MSC:

91B24 Microeconomic theory (price theory and economic markets)
90B22 Queues and service in operations research
91B38 Production theory, theory of the firm
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