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Strategic Revenue Management for Discriminatory Processor Sharing Queues

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Computer Performance Engineering and Stochastic Modelling (EPEW 2023, ASMTA 2023)

Part of the book series: Lecture Notes in Computer Science ((LNCS,volume 14231))

Abstract

We investigate optimal revenue management for Markovian discriminatory processor sharing (DPS) queues. The server receives revenue per customer, as well as an additional fee if customers opt to receive premium service. We first study the parameter allocation of the DPS discipline which optimises the server’s revenue, assuming that all customers rationally select between premium and non-premium service. We then extend revenue management to DPS queues with heterogenous customers that are also allowed to balk. It is shown that the optimal DPS discipline is a strict priority discipline when customers cannot balk, while a non-degenerate DPS discipline is optimal with balking.

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Authors and Affiliations

  1. Department of Telecommunications and Information Processing, Ghent University, Ghent, Belgium

    Dieter Fiems

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  1. Dieter Fiems
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Correspondence to Dieter Fiems .

Editor information

Editors and Affiliations

  1. Università degli Studi della Campania, Caserta, Italy

    Mauro Iacono

  2. Università degli Studi di Messina, Messina, Italy

    Marco Scarpa

  3. Università Cattolica del Sacro Cuore, Brescia, Italy

    Enrico Barbierato

  4. Università degli Studi di Messina, Messina, Italy

    Salvatore Serrano

  5. Università del Piemonte Orientale, Alessandria, Italy

    Davide Cerotti

  6. Universita degli Studi di Messina, Messina, Italy

    Francesco Longo

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Fiems, D. (2023). Strategic Revenue Management for Discriminatory Processor Sharing Queues. In: Iacono, M., Scarpa, M., Barbierato, E., Serrano, S., Cerotti, D., Longo, F. (eds) Computer Performance Engineering and Stochastic Modelling. EPEW ASMTA 2023 2023. Lecture Notes in Computer Science, vol 14231. Springer, Cham. https://doi.org/10.1007/978-3-031-43185-2_1

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  • DOI: https://doi.org/10.1007/978-3-031-43185-2_1

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-031-43184-5

  • Online ISBN: 978-3-031-43185-2

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