How to Scare a Customer Away and Get Profit: Filtration in a Queueing System

Authors

  • Sofia V. Surova National Research University Higher School of Economics
  • Kirill K. Furmanov Central Economic and Mathematical Institute of the Russian Academy of Sciences

DOI:

https://doi.org/10.24866/2311-2271/2024-1/1113

Keywords:

filtration, queueing systems , balking

Abstract

We consider a simple exponential queueing system with a finite capacity and heterogeneous customers. Type I customers are patient, they join the queue if the system capacity allows it. Type II customers are impatient, so that they refuse to join the queue if the waiting time is too large (so-called wait-based balking). The system makes profit servicing customers, and the profit depends on the type of the customer. We show that if type II customers bring less profit than type I customers then the administration may, in certain cases, increase profit by slowing down the service (decreasing the service rate). It makes the system unattractive for relatively unprofitable type II customers who stop forming the queue and thus leave the place for more profitable customers who otherwise would not have joined the queue due to capacity restriction.

Author Biographies

  • Sofia V. Surova, National Research University Higher School of Economics

    student, Faculty of Computer Science

  • Kirill K. Furmanov, Central Economic and Mathematical Institute of the Russian Academy of Sciences

    PhD in Economics, Senior Researcher, Department of Econometrics and Applied Statistics

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Published

29-05-2024

How to Cite

How to Scare a Customer Away and Get Profit: Filtration in a Queueing System. (2024). Bulletin of the Far Eastern Federal University. Economics and Management, 1, 80-90. https://doi.org/10.24866/2311-2271/2024-1/1113