On the Downs–Thomson Paradox in a Self-Financing Two-Tier Queuing System

Pengfei Guo · Robin Lindsey · Zhe George Zhang

53 citations0/0 files storedManufacturing & Service Operations Management

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Advanced Queuing Theory Analysis Transportation Planning and Optimization Transport and Economic Policies

Abstract

We model a two-tier queuing system with free and toll service options as two parallel M/M/1 servers. We solve for the welfare-maximizing toll service capacity and toll subject to the constraint that the toll service cover its costs. If the free and toll services are both used in equilibrium, a larger free-service capacity implies longer expected waiting time for the free service and lower welfare: an analogue to the Downs–Thomson paradox in transportation economics. The paradox is caused by the presence of scale economies in the toll service combined with the requirement that it be self-financing.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 53 citations exist upstream.

References

1969The Regulation of Queue Size by Levying Tolls 2003To Queue or Not to Queue: Equilibrium Behavior in Queueing Systems 1993THE ECONOMICS OF TRAFFIC CONGESTION 1998The Law of Peak-Hour Expressway Congestion 2012Highway Benefits: An Analytical Framework 1990User Delay Costs and Internal Pricing for a Service Facility 1977Great cities and their traffic 2009Optimal Design of Queueing Systems

Cited by

2016Tax/subsidy and capacity decisions in a two-tier health system with welfare redistributive objective 2015Analysis of two-tier public service systems under a government subsidy policy 2021Capacity reallocation via sinking high-quality resource in a hierarchical healthcare system 2022On the Benefit of Privatization in a Mixed Duopoly Service System 2016Analysis of price competition in two-tier service systems 2022Referral strategies and capacity decisions in a tiered hospital system with gatekeeping designs — Exemplified with Chinese healthcare system

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.