Congestion Tolls for Poisson Queuing Processes

The relationship between Pareto optimal (0s) and revenue maximizing (Or) tolls is examined for queuing models that permit balking. When customers have the same value for waiting time, Q, =Or provided the entrepreneur can impose a simple two-part tariff. With heterogeneous values for waiting time, Or can be greater than, equal to, or less than H,. Expanding the number of servers and charging multi-part tariffs are shown to be alternative methods for segmenting the market, and the welfare implications of these two strategies are explored.