Equilibrium in queueing systems with complementary products (Q2572904): Difference between revisions

The paper analyzes two pricing models. In both models, the service provider charges a flat price. In the first, the parking provider charges a price that is proportional to the duration the facility is in use by the customer. In the second model, the parking provider charges a fixed sum. The paper deals with a queueing system of the type \(M/M/1\) with infinite population, infinite queueing positions and a FCFS discipline. It gives the strategies of the suppliers and customers in equilibrium, shows that the service-provider's profits are higher than the parking-provider's, and proves that the prices are non-increasing with the potential rate of arrival. Next, it investigates an optimal strategy of a monopolist who owns both service and parking facilities.