Optimal pricing and service capacity management for a matching queue problem with loss-averse customers

• Published in: Optimization Vol. 70; no. 10; pp. 2169 - 2192
• Main Authors: Jiang, Tao, Chai, Xudong, Liu, Lu, Lv, Jun, Ammar, Sherif I.
• Format: Journal Article
• Language: English
• Published: Philadelphia Taylor & Francis 03.10.2021; Taylor & Francis LLC
• Subjects: Customer services; Customers; loss-averse customers; Match queue problem; Matching; optimal decisions; Pricing; Queues; strategic behaviour

This study examines a matching queue problem (double-sided matching queue) where customers are loss-averse with respect to their waiting times. We first set the reference point and construct the loss-averse customers' utility function, then we investigate the customers' strategic behaviour...