Congestion-based leadtime quotation and pricing for revenue maximization with heterogeneous customers (Q1934372)

The present paper deals with a queueing model where two customer classes compete for a given resource and each customer upon arrival is dynamically presented with a menu of price and leadtime pairs. The customers select their preferred pairs from the menu and the server is obligated to meet the given leadtime. Customers have convex-concave delay costs. The firm does not have information on a given customer's type, so the offered menus must be incentive compatible. A menu quotation policy is given and proven to be asymptotically optimal under traditional large-capacity heavy-traffic scaling.