Optimization Problems in Simple Competitive Model
We consider here optimization problems of a simple competitive model. There are several servers providing the same service. Each server fixes the price and the rate of service. The rate of service defines the customers time losses while waiting in queue for the service. The customer goes to the server with lesser total service cost. The total cost includes the service price plus waiting losses. The customer goes away, if the total cost exceeds a certain critical level. Both the flow of customers and the service time are stochastic. There is no known analytical solution for this model. The results are obtained by Monte-Carlo simulation. The analytical solution of a simplified model is considered.
KeywordsAverage Waiting Time Competitive Model Service Price Initial Contract Customer Rate
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