Hostname: page-component-7b7567c8c-2n9c9 Total loading time: 0 Render date: 2026-11-15T08:47:58.862Z Has data issue: false hasContentIssue false
  • English
  • Français

Incentive Effects of Multiple-Server Queueing Networks: The Principal-Agent Perspective

Published online by Cambridge University Press:  28 May 2015

Sin-Man Choi,
Ximin Huang,
Wai-Ki Ching and
Min Huang
Sin-Man Choi*
Affiliation:
Department of Industrial Engineering and Operations Research, University of California, Berkeley, US
Ximin Huang*
Affiliation:
College of Management, Georgia Institute of Technology, Atlanta, US
Wai-Ki Ching*
Affiliation:
Advanced Modeling and Applied Computing Laboratory, Department of Mathematics, The University of Hong Kong, Pokfulam Road, Hong Kong
Min Huang*
Affiliation:
College of Information Science and Engineering, Northeastern University; State Key Laboratory of Synthetical Automation for Process Industries, (Northeastern University), Shenyang, Liaoning, 110819, China
*
Corresponding author. Email: kelly.smchoi@berkeley.edu
Corresponding author. Email: hehe1121@gamil.com
Corresponding author. Email: wching@hku.hk
Corresponding author. Email: mhuang@mail.neu.edu.cn
Get access

Abstract

A two-server service network has been studied from the principal-agent perspective. In the model, services are rendered by two independent facilities coordinated by an agency, which seeks to devise a strategy to suitably allocate customers to the facilities and to simultaneously determine compensation levels. Two possible allocation schemes were compared — viz. the common queue and separate queue schemes. The separate queue allocation scheme was shown to give more competition incentives to the independent facilities and to also induce higher service capacity. In this paper, we investigate the general case of a multiple-server queueing model, and again find that the separate queue allocation scheme creates more competition incentives for servers and induces higher service capacities. In particular, if there are no severe diseconomies associated with increasing service capacity, it gives a lower expected sojourn time in equilibrium when the compensation level is sufficiently high.

Keywords

60K2568M2091A80Capacity allocationcompetitionincentive theoryMarkovian queueing systemsNash equilibriumprincipal agent

Information

Type
Review Article
Information
East Asian Journal on Applied Mathematics , Volume 1 , Issue 4 , November 2011, pp. 379 - 402
Copyright
Copyright © Global-Science Press 2011

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Article purchase

Temporarily unavailable

References

[1]Altman, E., Non-zero-sum Stochastic Games in Admission, Service and Routing Control in Queueing Systems, Queueing Syst. Theory Appl. 23 (1996), pp. 259–279.Google Scholar
[2]Andradotir, S., Ayhan, H. and Down, D., Server Assignment Policies for Maximizing the Steady-State Throughput of Finite Queueing Systems, Manag. Sci., 47 (2001), pp. 1421–1439.CrossRefGoogle Scholar
[3]Ben-Daya, M. and Hariga, M., Integrated Single Vendor Single Buyer Model with Stochastic Demand and Variable Lead Time, Int. J. Prod. Econ., 92 (2004), pp. 75–80.Google Scholar
[4]Bernstein, F., Chen, F. and Federgruen, A., Coordinating Supply Chains with Simple Pricing Schemes: The Role of Vendor-Managed Inventories, Manag. Sci., 52 (2006), pp. 1483–1492.CrossRefGoogle Scholar
[5]Ching, W., On Convergence of Asynchronous Greedy Algorithm with Relaxation in Multiclass Queueing Environment, IEEE Communication Letters, 3 (1999), pp. 34–36.CrossRefGoogle Scholar
[6]Ching, W., Iterative Methods for Queuing and Manufacturing Systems, Springer Monographs in Mathematics, (2001), Springer-Verlag, London.CrossRefGoogle Scholar
[7]Ching, W. and Ng, M., Markov Chains: Models, Algorithms and Applications, International Series on operations Research and Management Science, (2006) Springer, New York.Google Scholar
[8]Ching, W., Choi, S. and Huang, M., Optimal Service Capacity in A Multiple-Server Queueing System: A Game Theory Approach, J. Ind. Manag. Optim., 6, (2010), pp. 73–102.CrossRefGoogle Scholar
[9]Choi, S., Ching, W. and Huang, M., Incentive Effects of Common and Separate Queues with Multiple Servers: The Principal-Agent Perspective, Proceedings of the 39th international Conference on Computers and Industrial Engineering (CIE39), Troyes, France, 6-8, July, (2009), pp. 1261–1267.Google Scholar
[10]Ching, W., Choi, S. and Huang, X., Inducing High Service Capacities in Outsourcing via Penaltyand Competition, to appear in int. J. Prod. Res., (2011).Google Scholar
[11]Crabill, C., Grossand, D.Magazine, M., A Classified Bibliography of Research on Optimal Control of Queues, Oper. Res. 25 (1977), pp. 219–232.Google Scholar
[12]El-Taha, M. and Maddah, B., Allocation of Service Time in a Multiserver System, Manag. Sci., 52 (2006), pp. 623–637.Google Scholar
[13]Kalai, E., Kamien, M. and Rubinovitch, , Optimal Service Speeds in a Competitive Environment, Manag. Sci. 38(8) (1992), pp. 1154–1163.CrossRefGoogle Scholar
[14]Gilbert, S. and Weng, Z., Incentive Effects Favor Nonconsolidating Queues in a Service System: The Principal-Agent Perspective, Manag. Sci. 44(12) (1998), pp. 1662–1669.Google Scholar
[15]Laffont, J., and Martimort, D., The Theory of Incentives: the Principal-agent Model, (2002) Princeton; Oxford: Princeton University Press.Google Scholar
[16]Mishra, B. and Raghunathan, S., Retailer vs. Vendor-Managed Inventory and Brand Competition, Manag. Sci., 50 (2004), pp. 445–457.CrossRefGoogle Scholar
[17]Morries, P., Introduction to Game Theory, (1994), New York, Springer-Verlag.CrossRefGoogle Scholar
[18]Tai, A. and Ching, W., A Quantity-time-based Dispatching Policy for a VMI System, Lecture Notes in Computer Science, Springer. 3483 (2005), pp. 342–349.Google Scholar
[19]Teghem, J., Control of the Service Process in a Queueing System. Euro. J. Oper. Res., 23 (1986), pp. 141–158.CrossRefGoogle Scholar
[20]Thomas, D., Coordinated Supply Chain Management, Euro. J. Oper. Res., 94 (1996), pp. 1–15.Google Scholar