Join, balk, or jettison? The effect of flexibility and ranking knowledge in systems with batch arrivals

Abstract

Families that visit theme parks like Disneyland are debating on two aspects when they try to determine whether they prefer to join an activity of interest or would rather balk: (1) Is it better to join or balk as a group or allow the flexibility to get separated and jettison some members? and (2) Will it make any difference if they set a ranking among themselves beforehand as to who will be served first, second, etc.? We tackle the effect of flexibility and ranking knowledge and answer the above questions considering a single server Markovian queue with a generic batch size distribution. We consider two levels of flexibility: an inflexible setting, under which a family makes a common decision, and a flexible setting, under which each member makes her own decision. We pair each level with two sublevels with respect to the ranking knowledge: the case where the members set their ranking beforehand, and the case where they do not and assume they will be served according to a random order. We provide a full analytical characterization of the equilibrium and socially optimal strategies, and a comprehensive analysis of the intricate interplay among flexibility, ranking knowledge, and batch size variability, notions that do not exist in single‐ins arrival systems. We offer insights as to under which circumstances entity jettison is preferable. We investigate the corresponding implications of the above on system throughput and social welfare and determine which setting is preferable for the customers and which for the society, depending on the objective and the system dynamics. Further, we highlight key differences between single versus batch‐arrival models and provide high‐level guidelines for managers and policymakers as to how they can influence customer decisions so that they move toward the preferable setting (e.g., by revealing/concealing the ranking, encouraging flexibility, pricing, etc.).