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On the relation between the mean and variance of delay in dynamic queues with random capacity and demand

Fosgerau, Mogens (2010): On the relation between the mean and variance of delay in dynamic queues with random capacity and demand. Published in: Journal of Economic Dynamics & Control , Vol. 34, (2010): pp. 598-603.

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Abstract

This paper investigates the distribution of delays during a repeatedly occurring demand peak in a congested facility with random capacity and demand, such as an airport or an urban road. Congestion is described in the form of a dynamic queue using the Vickrey bottleneck model and assuming Nash equilibrium in arrival times. The paper shows that the expected delay and the variance of delay vary differently over time during the peak and must hence be considered separately. The paper gives some characterization of how the expected delay and the variance of delay are related, which explain the looping phenomenon that has now been observed a number of times. Empirical illustration is provided.

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