Performance Planning, Quality-of-Service, and Pricing under Competition

摘要

In this work we model the relationship between the capacity and the Quality of Service (QoS) offered by the firm in a competitive scenario of two firm's working to maximize their profits. Using simple queueing theoretic models we study the sensitivity of a firm's market share to price, capacity and market size. Our preliminary studies yield important properties of the equilibrium solution which may further provide important "engineering" guidelines for performance planning and pricing strategies.