The effect of information on queue-scalping service systems

Abstract

We consider an M/M/1 queueing system with a single queue scalper who makes profit by selling his position in the queue. The equilibrium purchasing strategies of customers under observable case (with double-threshold strategy) and unobservable case (with mixed strategy) are derived. The profits of the queue scalper are obtained under two information levels. Numerical experiments suggest that the queue scalper is better off with unobservable case when the system is too congested or the operating cost is too low.