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ETD Abstract Container

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Pricing Models for Admission in Service Systems

Printezis, Antonios
http://rave.ohiolink.edu/etdc/view?acc_num=case1112718326

Abstract Details

2005, Doctor of Philosophy, Case Western Reserve University, Operations Research.
Since the service is an economic good, imposing an admission price often provides an efficient means for matching supply and demand. On the other hand an important dimension of providing a service is the time the customer has to wait, especially in situations where the time of delivery is the single factor apart from price that determines whether the customer will do business with the firm. These issues arise in a variety of situations in practice, ranging from manufacturing, to pure service systems, telecommunications, call centers and high bandwidth lines for data transfer. The problem becomes more involved when the potential customers differ in their sensitivity to waiting. In the first part of this work we classify customers into two classes, based on their sensitivity to delay and study the effects of price discrimination on revenue. Next, we consider a system without the ability to price discriminate. We suggest splitting the available capacity into two servers and advertising different entrance fees. Finally, we propose a mechanism that employs options for service as means to increase system flexibility, customer satisfaction and revenue generation. It is typical in this line of research to assume that, upon arrival to the system the customer is given the opportunity to select the mode of service and the corresponding price without any restrictions, and, in many cases, is informed about the level of congestion in the system before he makes this selection. Although this is beneficial to the customers, it may make it harder for the service provider to plan for the necessary service capacity. There is thus a tradeoff between customer flexibility and service provider capacity planning that is often met in supply chains of physical products. In the last chapter of this thesis we propose a mechanism that addresses this tradeoff by employing options for service. The options are offered at a fixed price per unit. A customer purchases a number of them and for a specified number of subsequent periods, can exercise one option at any period, after observing the system congestion, to obtain expedited service.
Apostolos Burnetas (Advisor)
121 p.
Pricing; Service; Options; Queueing; Discrimination; Revenue Management; Pricing Policies; Service Operations; Price Discrimination

Recommended Citations

Citations

  • Printezis, A. (2005). Pricing Models for Admission in Service Systems [Doctoral dissertation, Case Western Reserve University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=case1112718326

    APA Style (7th edition)

  • Printezis, Antonios. Pricing Models for Admission in Service Systems. 2005. Case Western Reserve University, Doctoral dissertation. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=case1112718326.

    MLA Style (8th edition)

  • Printezis, Antonios. "Pricing Models for Admission in Service Systems." Doctoral dissertation, Case Western Reserve University, 2005. http://rave.ohiolink.edu/etdc/view?acc_num=case1112718326

    Chicago Manual of Style (17th edition)

case1112718326
1,266
© 2005, all rights reserved.
This open access ETD is published by Case Western Reserve University School of Graduate Studies and OhioLINK.