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21078 Cost sharing of cooperating queues in a Jackson network

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Timmer, J.B. and Scheinhardt, W.R.W. (2011) Cost sharing of cooperating queues in a Jackson network. Memorandum 1969, Department of Applied Mathematics, University of Twente, Enschede. ISSN 1874-4850

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Official URL: http://www.math.utwente.nl/publications

Abstract

We consider networks of queues in which the independent operators of individual queues may cooperate to reduce the amount of waiting. More specifically, we focus on Jackson networks in which the total capacity of the servers can be redistributed over all queues in any desired way. If we associate a cost to waiting that is linear in the queue lengths, it is known how the operators should share the available service capacity to minimize the long run total cost.
We answer the question whether or not (the operators of) the individual queues will indeed cooperate in this way, and if so, how they will share the cost in the new situation. One of the results is an explicit cost allocation that is beneficial for all operators. The approach used also works for other cost functions, such as the server utilization.

Item Type:	Internal Report (Memorandum)
Research Group:	EWI-SOR: Stochastic Operations Research
Research Program:	CTIT-DSN: Dependable Systems and Networks
Uncontrolled Keywords:	Jackson network, Cooperation, Cost allocation, Game theory, Capacity allocation
ID Code:	21078
Deposited On:	23 December 2011
More Information:	statistics metis

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