Title:
Optimal Pricing for a Service Facility with Congestion Penalties

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dc.contributor.advisor Ayhan, Hayriye
dc.contributor.advisor Foley, Robert D.
dc.contributor.author Maoui, Idriss en_US
dc.contributor.committeeMember Ward, Amy R.
dc.contributor.committeeMember Serfozo, Richard F.
dc.contributor.committeeMember Yang Wang
dc.contributor.department Industrial and Systems Engineering en_US
dc.date.accessioned 2006-06-09T18:13:32Z
dc.date.available 2006-06-09T18:13:32Z
dc.date.issued 2006-04-06 en_US
dc.description.abstract We consider the optimal pricing problem in a service facility in order to maximize its long-run average profit per unit time. We model the facility as a queueing process that may have finite or infinite capacity. Customers are admitted into the system if it is not full and if they are willing to pay the price posted by the service provider. Moreover, the congestion level in the facility incurs penalties that greatly influence profit. We model congestion penalties in three different manners: holding costs, balking customers and impatient customers. First, we assume that congestion-dependent holding costs are incurred per unit of time. Second, we consider that each customer might be deterred by the system congestion level and might balk upon arrival. Third, customers are impatient and can leave the system with a full refund before being serviced. We are interested in both static and dynamic pricing for all three types of congestion penalties. In the static case, we demonstrate that there is a unique optimal price that maximizes the long-run average profit per unit time. We also investigate how optimal prices vary as system parameters change. In the dynamic case, we show the existence of an optimal stationary policy in a continuous and unbounded action space that maximizes the long-run average profit per unit time. We provide explicit expressions for this policy under certain conditions. We also analyze the structure of this policy and investigate its relationship with our optimal static price. en_US
dc.description.degree Ph.D. en_US
dc.format.extent 617241 bytes
dc.format.mimetype application/pdf
dc.identifier.uri http://hdl.handle.net/1853/10501
dc.language.iso en_US
dc.publisher Georgia Institute of Technology en_US
dc.subject Queueing theory en_US
dc.subject Applied probability
dc.subject Pricing
dc.subject Operations research
dc.title Optimal Pricing for a Service Facility with Congestion Penalties en_US
dc.type Text
dc.type.genre Dissertation
dspace.entity.type Publication
local.contributor.advisor Ayhan, Hayriye
local.contributor.corporatename H. Milton Stewart School of Industrial and Systems Engineering
local.contributor.corporatename College of Engineering
relation.isAdvisorOfPublication 2d566241-92bb-4166-9fec-9886b4b79f96
relation.isOrgUnitOfPublication 29ad75f0-242d-49a7-9b3d-0ac88893323c
relation.isOrgUnitOfPublication 7c022d60-21d5-497c-b552-95e489a06569
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