Customer Choice and Routing in Queueing Networks
Stanford GSB Working Paper No. 1782
28 Pages Posted: 15 Oct 2003
Date Written: January 2003
We study self-interested routing in stochastic networks, taking into account the discrete stochastic dynamics of such networks. We analyze a two station multiclass queueing network in which the system manager chooses the scheduling rule used, and individual customers choose routes in a self-interested manner. We show that this network can be unstable in Nash equilibrium when the scheduling rule is chosen naively by the system manager. We also design a non-trivial scheduling rule that negates the performance degradation due to self-interested routing and achieves a Nash equilibrium with excellent performance.
Suggested Citation: Suggested Citation