Abstract
We consider a pricing in a single observable queue, where customers all have the same valuation, V , and the same waiting cost, v. It is known that earning rate is maximized in such a model when state-dependent pricing is used and an admissions threshold is deployed whereby arriving customers may not join the queue if the total number of customers exceeds this threshold. This paper is the first to explicitly derive the optimal threshold. We use our explicit formulation to obtain asymptotic results on how the threshold grows with V.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
