Strategic Revenue Management of Preemptive versus Non-Preemptive Queues

Jan 1, 2021·
Jonathan Chamberlain
David Starobinski
· 0 min read
Consider a two-class unobservable priority queue, with Poisson arrivals, generally distributed service, and strategic customers. Customers are charged a fee when joining the premium class. We analyze the maximum revenue achievable under the non-preemptive (NP) and preemptive-resume (PR) policies, and show that a provider is always better off implementing the PR policy. Further, the maximum revenue under PR is sometimes achieved when only a fraction of the customers join the premium class.
Operations Research Letters