Capacity Management: Pricing Strategy, Performance and the Role of Information

Details

Serval ID
serval:BIB_FB170C4883BF
Type
Article: article from journal or magazin.
Collection
Publications
Title
Capacity Management: Pricing Strategy, Performance and the Role of Information
Journal
International Journal of Production Economics
Author(s)
van Ackere A.
ISSN
0925-5273
Publication state
Published
Issued date
06/1995
Peer-reviewed
Oui
Volume
40
Number
1
Pages
89-100
Language
english
Abstract
A queueing model is used to analyse the interrelation between system performance, pricing strategy and information. Two input control methods are studied: a club approach (controlling the expected arrival rate) and a free-entry system (controlling the maximum backlog), where a new customer may or may not be able to observe the existing backlog. The club approach generally leads to higher prices, lower utilization and lower profit. Under the free-entry system, customers are better off if they can observe the backlog, but society as a whole is worse off. If there is a shortage of customers, the club approach becomes more attractive, as customers must pre-commit.
Keywords
Queues, stochastic model applications, pricing
Web of science
Create date
02/06/2009 14:14
Last modification date
20/08/2019 16:26
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