Fairness among servers when capacity decisions are endogenous

Xin Geng, Woonghee Tim Huh, Mahesh Nagarajan

Research output: Contribution to journalArticlepeer-review

6 Scopus citations


We look at a simple service system with two servers serving arriving jobs (single class). Our interest is in examining the effect of routing policies on servers when they care about fairness among themselves, and when they can endogenously choose capacities in response to the routing policy. Therefore, we study the two-server game where the servers' objective functions have a term explicitly modeling fairness. Moreover, we focus on four commonly seen policies that are from one general class. Theoretical results concerning the existence and uniqueness of the Nash equilibrium are proved for some policies. Further managerial insights are given based on simulation studies on servers' equilibrium/off-equilibrium behaviors and the resulting system efficiency performance under different policies.

Original languageEnglish (US)
Pages (from-to)961-974
Number of pages14
JournalProduction and Operations Management
Issue number6
StatePublished - Jan 1 2015
Externally publishedYes


  • endogenous capacity
  • fairness
  • heterogeneous servers
  • service system

ASJC Scopus subject areas

  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering
  • Management of Technology and Innovation


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