A Study on the Splitting Strategy of Server Resources

TL;DR

This paper extends Noar's charged queue model to multi-server systems where customers choose optimal options based on disclosed information, analyzing whether resource splitting increases revenue.

Contribution

It introduces an extended model for multi-server systems with customer choice and proves that resource splitting does not increase revenue under equal-toll limitations.

Findings

Splitting server resources does not increase revenue under certain conditions.

Customers' access to length and service rate information influences their choices.

The model provides insights into optimal resource allocation strategies.

Abstract

The paper is based on Noar's model of charged queues. We extend this model into multi-server systems with information about length and service rate disclosed for all the customers, and the customers can choose the optimal options. We discuss whether the splitting strategy of the server resource could bring more revenue for the service provider. We prove that any G/D/1 server supplier cannot earn more revenue by splitting his resource under the equal-toll limitations.