Pareto-efficient Pricing And Capacity Choices For A Service Facility

摘要

In terms of different interests between the public and private operators, this paper presents a Paretoefficient analysis for maximizing the social welfare and the operator's profit. The Pareto-efficient frontier for service pricing and capacity choices is explored under the unobservable FIFO M/M/l queue configuration. It is found that among all the Pareto-efficient schemes, those with a higher arrival rate always tend to set a larger service capacity and charge a lower price.