Innovative Priority Mechanisms in Service Operations : Theory and Applications / / by Shiliang Cui, Zhongbin Wang, Luyi Yang.

• Superior document: SpringerBriefs in Service Science,
• VerfasserIn: Cui, Shiliang.; Wang, Zhongbin.; Yang, Luyi.
• Place / Publishing House: Cham : : Springer International Publishing :, Imprint: Springer,, 2023.
• Year of Publication: 2023
• Edition: 1st ed. 2023.
• Language: English
• Series: SpringerBriefs in Service Science,
• Physical Description: 1 online resource (IX, 139 p. 21 illus., 5 illus. in color.)

This book introduces the most advanced and recent theoretical research on innovative priority mechanisms in service settings. It covers cutting-edge topics on service innovations such as line-sitting, service-position-trading, referral priority programs, queue-scalping, distance-based priority, and dynamic priority policy. It also contains a variety of practical examples and applications which help managers to make better decisions and to develop a coherent business strategy. This book appeals to a wide readership, from academics and Ph.D. students who are interested in priority mechanisms, to service managers and researchers in the service industry. This is an open access book.

Table of Contents

Intro -- Preface -- Contents -- 1 A Brief Review of Research on Priority Queues with Self-Interested Customers -- 1 Introduction -- 2 Unobservable Queues -- 2.1 Priority Pricing -- 2.2 Priority Auctions -- 3 Observable Queues -- 4 Emerging Research Directions -- References -- 2 Auctions for Trading Queueing Positions -- 1 Introduction -- 2 Model Setup -- 3 Baseline Auction -- 3.1 Trading Rules -- 3.2 Auction Equilibrium -- 4 Social Welfare and Service Provider's Revenue -- 4.1 Social Optimization -- 4.2 Service Provider's Revenue Maximization -- 5 Trading Through an Intermediary -- 5.1 Baseline Auction with a Trade Participation Fee -- 5.2 Augmented Auction: Trading Rulesand a Motivating Example -- 5.3 Auction Equilibrium -- 5.4 Optimal Auction Parameters and Structure -- 5.5 The Value of Trading vs. FIFO -- 6 Conclusion Remarks -- References -- 3 Line-Sitting Services -- 1 Introduction -- 2 Model Preliminaries and FIFO Benchmark -- 2.1 FIFO Benchmark -- 3 Line-Sitting -- 3.1 Comparison Between Line-Sitting and FIFO -- 4 Accommodating Line-Sitting or Selling Priority? -- 4.1 Priority Purchasing -- 4.2 Comparison Between Priority and FIFO -- 4.3 Comparison Between Line-Sitting and Priority -- 5 Three-Way Comparison -- 6 Endogenizing Service Fee B -- 7 Finitely Many Line-Sitters -- 8 Pre-commitment Payment -- 8.1 Revenue of the Line-Sitting Firm -- 8.2 Welfare Implications -- 9 Concluding Remarks -- References -- 4 Queue Scalping -- 1 Introduction -- 2 Model Description -- 3 Analysis of the Single-Scalper Model -- 3.1 What Queues Are Susceptible to Scalping? -- 4 Analysis of the Multi-Scalper Model -- 4.1 What Queues Are Susceptible to Scalping? -- 5 Impact of Queue-Scalping -- 5.1 System Throughput -- 5.2 Consumer Surplus -- 5.3 Social Welfare -- 6 The Long-Run Capacity Response -- 7 Comparison with Line-Sitting -- 8 Effect of Queue Information.

9 Concluding Remarks -- References -- 5 Referral Priority Programs -- 1 Introduction -- 2 Model -- 2.1 Queueing Preliminaries -- 3 Equilibrium -- 3.1 Equilibrium Referral Strategies -- 3.2 Existence of Equilibria and Structural Results -- 4 Effectiveness of the Referral Priority Program -- 4.1 Analytic Results -- 4.1.1 System Throughput -- 4.1.2 Customer Welfare -- 4.2 Summary -- 5 Extensions -- 6 Optimal Pricing, Referral Reward Program, and Comparison -- 6.1 Pricing in the Referral Reward Program -- 6.2 Numerical Comparison -- 7 Optimal Scheduling in Referral Priority Programs -- 7.1 Numerical Illustrations -- 7.2 Capacity Implications -- 8 Concluding Remarks -- References -- 6 Distance-Based Service Priority -- 1 Introduction -- 2 Model Preliminaries and FIFO Benchmark -- 2.1 FIFO Service Discipline -- 3 Distance-Based Service Priority Policy -- 4 Comparison between Priority and FIFO Policies -- 5 Two-Dimensional Service Area -- 6 Optimal Service Fee B -- 7 Comparison to Price Discrimination Strategy -- 7.1 Comparing PDS to the FIFO Benchmark -- 7.2 Comparing PDS to the Priority Policy -- 8 Concluding Remarks -- References -- 7 In-Queue Priority Purchase -- 1 Introduction -- 2 Model Description -- 3 Simultaneous Upgrade Rule -- 3.1 Equilibrium Definition -- 3.2 Analysis -- 3.2.1 Step 1: Equilibrium Structure -- 3.2.2 Step 2: Nonexistence of Pure-Strategy Equilibria -- 3.3 A Small Buffer System -- 4 Sequential Upgrade Rule -- 4.1 Equilibrium Definition -- 4.2 Sufficiently Light or Heavy Traffic -- 4.3 Small Buffer Systems -- 4.3.1 K=2 -- 4.3.2 K=3 -- 5 Concluding Remarks -- References.