The service pricing strategies and the strategic behavior of customers in an unobservable Markovian queue with unreliable server

Meziani, Kamel; Rahmoune, Fazia; Radjef, Mohammed Saïd

doi:10.1051/ro/2021181

Cited by 2 publications

(1 citation statement)

References 36 publications

(99 reference statements)

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“…However, it is essential to recognize that pricing strategies are not always fair to consumers [263]. In some cases, businesses use complex pricing models that take advantage of information asymmetry to charge higher prices than necessary.…”

Section: Service Pricingmentioning

confidence: 99%

Autonomous and Sustainable Service Economies: Data-Driven Optimization of Design and Operations through Discovery of Multi-Perspective Parameters

Alahmari,

Mehmood,

Alzahrani

et al. 2023

Sustainability

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The rise in the service economy has been fueled by breakthroughs in technology, globalization, and evolving consumer patterns. However, this sector faces various challenges, such as issues related to service quality, innovation, efficiency, and sustainability, as well as macro-level challenges such as globalization, geopolitical risks, failures of financial institutions, technological disruptions, climate change, demographic shifts, and regulatory changes. The impacts of these challenges on society and the economy can be both significant and unpredictable, potentially endangering sustainability. Therefore, it is crucial to comprehensively study services and service economies at both holistic and local levels. To this end, the objective of this study is to develop and validate an artificial-intelligence-based methodology to gain a comprehensive understanding of the service sector by identifying key parameters from the academic literature and public opinion. This methodology aims to provide in-depth insights into the creation of smarter, more sustainable services and economies, ultimately contributing to the development of sustainable future societies. A software tool is developed that employs a data-driven approach involving the use of word embeddings, dimensionality reduction, clustering, and word importance. A large dataset comprising 175 K research articles was created from the Scopus database, and after analysis, 29 distinct parameters related to the service sector were identified and grouped into 6 macro-parameters: smart society and infrastructure, digital transformation, service lifecycle management, and others. The analysis of over 112 K tweets collected from Saudi Arabia identified 11 parameters categorized into 2 macro-parameters: private sector services and government services. The software tool was used to generate a knowledge structure, taxonomy, and framework for the service sector, in addition to a detailed literature review based on over 300 research articles. The conclusions highlight the significant theoretical and practical implications of the presented study for autonomous capabilities in systems, which can contribute to the development of sustainable, responsible, and smarter economies and societies.

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Section: Service Pricingmentioning

confidence: 99%

Autonomous and Sustainable Service Economies: Data-Driven Optimization of Design and Operations through Discovery of Multi-Perspective Parameters

Alahmari,

Mehmood,

Alzahrani

et al. 2023

Sustainability

View full text Add to dashboard Cite

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The service pricing strategies and the strategic behavior of customers in an unobservable Markovian queue with unreliable server

2022

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A Stackelberg game is used to study the service pricing and the strategic behavior of customers in an unreliable and totally unobservable M/M/1 queue under a reward-cost structure. At the first stage, the server manager, acting as a leader, chooses a service price and, at the second stage, a customer, arriving at the system and acting as a follower, chooses to join the system or an outside opportunity, knowing only the service price imposed by the server manager and the system parameters. We show that the constructed game admits an equilibrium and we give explicit forms of server manager and customers equilibrium behavioral strategies. The results of the proposed model show that the assumption that customers are risk-neutral is fundamental for the standard approach usually used. Moreover, we determine the socially optimal price that maximizes the social welfare and we compare it to the Stackelberg equilibrium. We illustrate, by numerical examples, the effect of some system parameters on the equilibrium service price and the revenue of the server manager.

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The service pricing strategies and the strategic behavior of customers in an unobservable Markovian queue with unreliable server

Cited by 2 publications

References 36 publications

Autonomous and Sustainable Service Economies: Data-Driven Optimization of Design and Operations through Discovery of Multi-Perspective Parameters

Autonomous and Sustainable Service Economies: Data-Driven Optimization of Design and Operations through Discovery of Multi-Perspective Parameters

The service pricing strategies and the strategic behavior of customers in an unobservable Markovian queue with unreliable server

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