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In recent years, there is a growing research about queueing models withcustomers who choose their service durations. In general, the model assumptionsin the existing literature imply that every customer knows his service demandwhen he enters into the service position. Clearly, this property is notconsistent with some real-life situations. Thus, motivated by this issue, thiswork includes a single-server queueing model with customers who dynamicallychoose their service durations. In this setup, it is shown how to derive aprice-regulation (Pigouvian tax) which implies an optimal resource allocationfrom a social point of view. In particular, this work includes an efficientprocedure for computation of the parameters of this price function.

Regulation of a single-server queue with customers who dynamically choose their service durations