{"title":"Pricing strategies of differentiated services in a single server system","authors":"Chunhui Liu, W. Zhou, Yulin Zhou","doi":"10.1109/ICSSSM.2017.7996133","DOIUrl":null,"url":null,"abstract":"We consider a single server sharing system with two classes of services: premium and regular services. Two services are scheduled by a random polling way. Customer heterogeneity and delay sensitivity are both taken into account. We first proved that the polling system is equivalent to two service rate-dependent dedicated systems. Then we further analyze the optimal pricing strategies for respectively profit-maximization and welfare-maximization, and find that strategies for welfare-maximization can lead to higher facility utilization and a wider range that two differentiated services coexist.","PeriodicalId":239892,"journal":{"name":"2017 International Conference on Service Systems and Service Management","volume":"1 1","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2017-06-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"2017 International Conference on Service Systems and Service Management","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1109/ICSSSM.2017.7996133","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0
Abstract
We consider a single server sharing system with two classes of services: premium and regular services. Two services are scheduled by a random polling way. Customer heterogeneity and delay sensitivity are both taken into account. We first proved that the polling system is equivalent to two service rate-dependent dedicated systems. Then we further analyze the optimal pricing strategies for respectively profit-maximization and welfare-maximization, and find that strategies for welfare-maximization can lead to higher facility utilization and a wider range that two differentiated services coexist.
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