The temporal use of a telephone line

Abstract

This paper models the temporal use of a multi-channel telephone line. All individuals would like to complete their calls during the peak period. However, the capacity of the line is not sufficient for this. An individual therefore faces a tradeoff. If he starts telephoning during the peak period, he may have to re-dial for a long time until he gets a free line, while if he places his call during the off-peak period, his expected waiting time is reduced but the time is inconvenient (“schedule delay costs”). Equilibrium obtains when the expected costs of placing a call during the peak and off-peak periods are equalized. Various pricing policies are treated, and topics for future research are discussed. The model improves on previous work in explicitly treating the time-of-use decision and schedule delay costs. Appropriately modified, the model can be adapted to treat other telecommunication facilities.