Profit-Maximizing Pricing-Scheduling Policies in Queues

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We consider the problem of designing a profit-maximizing pricing-scheduling policy for a service facility serving heterogeneous customers with private information about their service value and time-sensitivity. Our main results are: (a) If customers belong to one of finitely many types, an optimal pricing-scheduling policy can be found in polynomial time under certain natural conditions on the problem data; and (b) If customer-types form a continuum, we characterize conditions under which a natural priority auction mechanism is optimal. This work lies at the interface of economics and queueing theory, and draws on techniques from these disciplines.


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  • Created By:
    Barbara Christopher
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  • Modified By:
    Fletcher Moore
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