Equilibrium Strategies and Optimal Control for a Double-Ended Queue

Ying Shi () and Zhaotong Lian
Additional contact information
Ying Shi: The School of Information, Zhejiang University of Finance and Economics, Hangzhou, P. R. China
Zhaotong Lian: Faculty of Business Administration, University of Macau, Macau SAR, P. R. China

Asia-Pacific Journal of Operational Research (APJOR), 2016, vol. 33, issue 03, 1-18

Abstract: In this paper, we study a passenger–taxi matching queue system. The system is modeled as a birth-and-death process. Since the system is so complex, we mainly focus on numerical analysis. A centralized system and a decentralized one are considered. In the centralized system, the government sets thresholds for both passengers and taxis to maximize the social welfare. We analyze the performance measures of this model, discuss the range of two thresholds that ensures positive social welfare, and numerically give the upper bound of threshold. In the decentralized system, passengers and taxis determine whether to join the system or balk based on their individual utility functions. Further, we consider the government’s tax and subsidy to the taxi drivers. Numerical results show that the social welfare function in the centralized system is concave with respect to the thresholds and the government central planning benefits the society. In the decentralized system, no matter what the passenger and taxi arrival rates are, the social welfare is concave with respect to the taxi fare. Moreover, we analyze the effect of the arrival rates and the benefits of the tax and subsidy.

Keywords: Double-ended queueing system; Markov process; equilibrium; pricing; buffer (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0217595916500226
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:apjorx:v:33:y:2016:i:03:n:s0217595916500226

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0217595916500226

Access Statistics for this article

Asia-Pacific Journal of Operational Research (APJOR) is currently edited by Gongyun Zhao

More articles in Asia-Pacific Journal of Operational Research (APJOR) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().