Performance Planning, Quality-of-Service, and Pricing under Competition (original) (raw)

Lecture Notes in Computer Science, 2004

Abstract

ABSTRACT In this work we model the relationship between the capacity and the Quality of Service (QoS) oered by the rm in a competitive scenario of two rm's working to maximize their prots. Using simple queueing theoretic models we study the sensitivity of a rm's market share to price, capacity and market size. Our preliminary studies yield important properties of the equilibrium solution which may further pro- vide important \engineering" guidelines for performance planning and pricing strategies.

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