Optimal Switching Strategy between Admission Control and Pricing Control Policies with Two Types of Customers and Search Costs

<div>Graphs of <svg height="12.0395pt" id="M272" style="vertical-align:-2.3616pt" version="1.1" viewbox="-0.0498162 -9.6779 23.2587 12.0395" width="23.2587pt" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink"><g transform="matrix(.0135,0,0,-0.0135,0,0)"><path d="M429 650H175L169 622C251 614 259 612 244 532L174 152C163 91 152 37 135 -6C109 -72 67 -101 23 -113L33 -144C45 -143 73 -134 102 -119C186 -76 229 -1 254 133L327 532C341 609 347 613 423 622L429 650Z" id="g113-75"></path><glyph.data ascent="3473" descent="-2876" horiz-adv-x="452" vert-adv-y="452"></glyph.data></g><g transform="matrix(.0135,0,0,-0.0135,6.127,0)"><path d="M300 -147C201 -63 143 98 143 270S200 602 300 686L282 710C136 610 70 450 70 271V270C70 89 136 -72 282 -170L300 -147Z" id="g113-41"></path><glyph.data ascent="3473" descent="-2876" horiz-adv-x="346" vert-adv-y="346"></glyph.data></g><g transform="matrix(.0135,0,0,-0.0135,10.815,0)"><path d="M536 404C536 423 520 448 491 448C445 448 398 404 308 283L286 338C255 416 242 448 217 448C182 448 138 402 92 341L111 321C149 368 169 378 178 378C188 378 198 363 214 320L254 212C185 117 138 65 107 65C98 65 85 69 82 75C79 82 73 86 65 86C44 86 23 60 23 39C23 7 44 -12 71 -12C119 -12 168 33 265 177L306 61C321 17 347 -12 373 -12C413 -12 465 33 507 96L491 119C459 84 432 60 413 60C395 60 378 92 358 148L321 250C341 279 369 310 389 332C417 363 439 382 456 382C466 382 475 376 481 368C486 361 492 358 496 358C513 358 536 381 536 404Z" id="g113-121"></path><glyph.data ascent="3473" descent="-2876" horiz-adv-x="559" vert-adv-y="559"></glyph.data></g><g transform="matrix(.0135,0,0,-0.0135,18.388,0)"><path d="M275 270C275 450 212 609 64 710L45 686C145 604 203 442 203 270S147 -63 45 -147L64 -170C213 -68 275 89 275 270Z" id="g113-42"></path><glyph.data ascent="3473" descent="-2876" horiz-adv-x="346" vert-adv-y="346"></glyph.data></g></svg> and <svg height="13.1057pt" id="M273" style="vertical-align:-3.427799pt" version="1.1" viewbox="-0.0498162 -9.6779 10.2122 13.1057" width="10.2122pt" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink"><g transform="matrix(.0135,0,0,-0.0135,0,0)"><path d="M499 88L487 113C459 86 422 65 413 65C403 65 403 74 409 98L461 318C487 426 460 448 431 448C408 448 383 441 352 424C305 398 223 344 157 257H155L243 674C249 702 249 712 240 712C227 712 170 680 87 673L82 648H117C155 648 162 644 150 590L23 -4L30 -12C55 -4 81 3 105 8C113 53 131 150 143 187C199 281 323 387 372 387C390 387 393 369 380 311L328 86C313 19 319 -12 347 -12C379 -12 442 24 499 88Z" id="g113-105"></path><glyph.data ascent="3473" descent="-2876" horiz-adv-x="516" vert-adv-y="516"></glyph.data></g><g transform="matrix(.0095,0,0,-0.0095,6.923,3.264)"><path d="M250 606C250 634 233 656 203 656C168 656 146 618 146 593C146 564 169 545 192 545C227 545 250 573 250 606ZM227 95L212 119C187 98 152 71 135 71C129 71 128 78 134 102L207 373C219 418 217 451 194 451C165 451 92 411 30 351L44 326C77 353 106 371 114 371C124 371 121 357 117 341L55 97C32 5 46 -12 70 -12C108 -12 191 51 227 95Z" id="g50-106"></path><glyph.data ascent="3443" descent="-2856" horiz-adv-x="280" vert-adv-y="280"></glyph.data></g></svg>. If <svg height="13.1057pt" id="M274" style="vertical-align:-3.427799pt" version="1.1" viewbox="-0.0498162 -9.6779 47.8496 13.1057" width="47.8496pt" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink"><g transform="matrix(.0135,0,0,-0.0135,0,0)"><path d="M429 650H175L169 622C251 614 259 612 244 532L174 152C163 91 152 37 135 -6C109 -72 67 -101 23 -113L33 -144C45 -143 73 -134 102 -119C186 -76 229 -1 254 133L327 532C341 609 347 613 423 622L429 650Z" id="g113-75"></path><glyph.data ascent="3473" descent="-2876" horiz-adv-x="452" vert-adv-y="452"></glyph.data></g><g transform="matrix(.0135,0,0,-0.0135,6.127,0)"><path d="M300 -147C201 -63 143 98 143 270S200 602 300 686L282 710C136 610 70 450 70 271V270C70 89 136 -72 282 -170L300 -147Z" id="g113-41"></path><glyph.data ascent="3473" descent="-2876" horiz-adv-x="346" vert-adv-y="346"></glyph.data></g><g transform="matrix(.0135,0,0,-0.0135,10.815,0)"><path d="M499 88L487 113C459 86 422 65 413 65C403 65 403 74 409 98L461 318C487 426 460 448 431 448C408 448 383 441 352 424C305 398 223 344 157 257H155L243 674C249 702 249 712 240 712C227 712 170 680 87 673L82 648H117C155 648 162 644 150 590L23 -4L30 -12C55 -4 81 3 105 8C113 53 131 150 143 187C199 281 323 387 372 387C390 387 393 369 380 311L328 86C313 19 319 -12 347 -12C379 -12 442 24 499 88Z" id="g113-105"></path><glyph.data ascent="3473" descent="-2876" horiz-adv-x="516" vert-adv-y="516"></glyph.data></g><g transform="matrix(.0095,0,0,-0.0095,17.738,3.264)"><path d="M250 606C250 634 233 656 203 656C168 656 146 618 146 593C146 564 169 545 192 545C227 545 250 573 250 606ZM227 95L212 119C187 98 152 71 135 71C129 71 128 78 134 102L207 373C219 418 217 451 194 451C165 451 92 411 30 351L44 326C77 353 106 371 114 371C124 371 121 357 117 341L55 97C32 5 46 -12 70 -12C108 -12 191 51 227 95Z" id="g50-106"></path><glyph.data ascent="3443" descent="-2856" horiz-adv-x="280" vert-adv-y="280"></glyph.data></g><g transform="matrix(.0135,0,0,-0.0135,20.901,0)"><path d="M275 270C275 450 212 609 64 710L45 686C145 604 203 442 203 270S147 -63 45 -147L64 -170C213 -68 275 89 275 270Z" id="g113-42"></path><glyph.data ascent="3473" descent="-2876" horiz-adv-x="346" vert-adv-y="346"></glyph.data></g><g transform="matrix(.0135,0,0,-0.0135,29.374,0)"><path d="M512 230V281L75 514V456L453 256V254L75 55V-3L512 230Z" id="g117-92"></path><glyph.data ascent="3473" descent="-2876" horiz-adv-x="587" vert-adv-y="587"></glyph.data></g><g transform="matrix(.0135,0,0,-0.0135,41.112,0)"><path d="M241 635C89 635 35 457 35 312C35 153 89 -12 240 -12C390 -12 443 166 443 312C443 466 390 635 241 635ZM238 602C329 602 354 454 354 312C354 172 330 22 240 22C152 22 124 173 124 313S148 602 238 602Z" id="g113-49"></path><glyph.data ascent="3473" descent="-2876" horiz-adv-x="480" vert-adv-y="480"></glyph.data></g></svg>, adopting the admission control policy is optimal; otherwise, the pricing control policy is optimal.</div>

Advances in Operations Research

fig1

Figure 1

Figure 1: Optimal Switching Strategy between Admission Control and Pricing Control Policies with Two Types of Customers and Search Costs 