Pricing in Service Systems with Rational Balking and Abandonment of Time-Sensitive Customers

• 成果类型: Article
• 署名作者: Abouee-Mehrizi, Hossein; Zare, Ata Ghareaghaji; Konrad, Renata A.
• 署名单位: University of Waterloo; University of Toronto
• 刊物名称: PRODUCTION AND OPERATIONS MANAGEMENT
• ISSN/ISSBN: 1059-1478
• DOI: 10.1111/poms.13555
• 发表日期: 2022
• 页码: 495-510
• 关键词: Pricing; Service Systems; Queueing; strategic behavior; mixed-risk attitude

摘要

The current literature on pricing in service systems with time-sensitive customers predominately ignores the rational abandonment of customers with mixed-risk attitude. The goal of this study is to address this gap. We consider an unobservable queueing system with a nonlinear waiting cost function, which is concave up to a certain point and then becomes convex, capturing the mixed-risk attitude of customers observed in empirical studies. We assume that customers are sensitive with respect to waiting time (delay) and strategic regarding their balking and abandonment decisions. We characterize the optimal pricing policy that maximizes the service provider's revenue. We show that the pricing policies studied in the literature, including the joint service and cancellation (entrance) fee policy, are suboptimal and cannot induce the socially optimal behavior. We demonstrate that while the cancellation fee can regulate a customer's balking strategy, the service fee cannot effectively control a customer's abandonment decision. We then provide conditions under which the joint service and cancellation fee policy is optimal. We finally prove that the service provider should compensate customers for their waiting in order to efficiently control the abandonment of customers. We propose a pricing policy, which includes entrance, service, and wait time (delay) fees, that maximizes the provider's revenue. We derive the optimal fees and show that, under the proposed optimal pricing policy, customers pay service and cancellation fees while they are partially compensated for the time spent waiting for service.