Service Facility Location and Design with Pricing and Waiting-Time Considerations

  • Michael S. Pangburn
  • Euthemia Stavrulaki
Part of the Applied Optimization book series (APOP, volume 98)


Nash Equilibrium Arrival Rate Facility Location Reservation Price Optimal Price 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Brandeau, M.L. 1992. Characterization of the stochastic median queue trajectory in a plane with generalized distances. Operations Research 40(2), 331–341.zbMATHMathSciNetGoogle Scholar
  2. Bolch, G., S. Greiner, H. De Meer and K. Trivedi. 1998. Queueing networks and Markov chains, John Wiley and Sons, New York.zbMATHGoogle Scholar
  3. Cachon, G.P. and P.T. Harker. 2001. Competition and outsourcing with scale economies. Management Science 48(10), 1314–1333.CrossRefGoogle Scholar
  4. Chayet, S. and W.J. Hopp. 2002. Sequential entry with capacity, price, and lead-time competition. Working paper, The University of Chicago, Chicago, IL.Google Scholar
  5. D’Aspermont, C, J.J. Gabszewicz, and J.F. Thisse. 1979. On Hotelling’s “stability in competition”. Econometrica 47(5), 1145–1150.MathSciNetGoogle Scholar
  6. Daskin, M.S. 1995. Network and discrete location: models, algorithms, and applications. John Wiley & Sons.Google Scholar
  7. Desai. P.S. 2001. Quality segmentation in spatial markets: when does cannibalization affect product lime design? Marketing Science 20(3), 265–283.CrossRefGoogle Scholar
  8. Dewan, S. and H. Mendelson. 1990. User delay costs and international pricing for a service facility. Management Science 36, 1502–1517.zbMATHGoogle Scholar
  9. Dobson, G. and E. Stavrulaki. 2004. Simultaneous price, location, and capacity decisions on a line of time sensitive customers. Working paper, Bentley College, Waltham, MA.Google Scholar
  10. Eiselt, H.A., G. Laporte and J.F. Thisse. 1993. Competitive location model: A framework and bibliography. Transportation Science 27, 44–54.zbMATHGoogle Scholar
  11. Gilbert, S.M. and Z.K. Weng. 1998. Incentive effects favor nonconsolidating queues in a service system: the principal-agent perspective. Management Science 44(12) 1662–1669.zbMATHGoogle Scholar
  12. Ghosh, A.V. and F. Harche. 1993. Location-allocation models in the private sector: progress, problems, and prospects. Location Science 1, 88–106.Google Scholar
  13. Ha, A.Y. 1998. Incentive-compatible pricing for a service facility with joint production and congestion externalities. Management Science 44(12), 1623–1636.zbMATHCrossRefGoogle Scholar
  14. Halfin, S. and W. Whitt. 1981. Heavy-traffic limits for queues with many exponential servers. Operations Research 29, 567–588.MathSciNetzbMATHGoogle Scholar
  15. Hotelling, H. 1929. Stability in competition. Economic Journal 39, 41–57.Google Scholar
  16. Kalai, E., M.I. Kamien and M. Rubinovitch. 1992. Optimal service speeds in a competitive environment. Management Science 38(8), 1154–1163.CrossRefzbMATHGoogle Scholar
  17. Kwasnica A., and E. Stavrulaki. 2004. Competitive location and capacity decisions for facilities serving time-sensitive customers. Working paper, Bentley College, Waltham, MA.Google Scholar
  18. Lederer, P.J. and L. Li. 1997. Pricing, production, scheduling, and delivery time competition. Operations Research 45(3), 407–420.MathSciNetzbMATHGoogle Scholar
  19. Mendelson, H. 1985. Pricing computer services: queueing effects. Comm. ACM 28(3), 312–321.MathSciNetCrossRefGoogle Scholar
  20. Pangburn, M.S., and E. Stavrulaki. 2004. Capacity Setting with Pricing for Dispersed, Time-Sensitive Segments. Working paper, University of Oregon, Eugene, OR.Google Scholar
  21. Reitman, D. 1991. Endogenous quality differentiation in congested markets. Journal of Industrial Economics 39, 621–647.Google Scholar
  22. Stidham, S. Jr. 1992. Pricing and capacity decisions for a service facility: Stability and multiple local optima. Management Science 38(8), 1121–1139.zbMATHGoogle Scholar
  23. So, K.C. 2002. Price and time competition for service delivery. Manufacturing Service Operations Management 2(4), 392–409.CrossRefGoogle Scholar
  24. Tayur, S., R. Ganeshan, and M.J. Magazine. 1998. Quantitative models for supply chain management, Kluwer Academic Publishers.Google Scholar

Copyright information

© Springer Science+Business Media, Inc. 2005

Authors and Affiliations

  • Michael S. Pangburn
    • 1
  • Euthemia Stavrulaki
    • 2
  1. 1.Lundquist College of BusinessUniversity of OregonEugene
  2. 2.McCallum School of BusinessBentley CollegeWaltham

Personalised recommendations