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Scheduling packet transmission over wireless links requires quantification of the QoS performance such as delay and packet loss in terms of known system parameters. One of the key issues is how to account for effects of the compensation mechanism on the system's QoS performance. In this paper, we develop a model, namely the two-stage tandem queuing (TSTQ), to characterize the behaviors of packet flows in the system, which applies the wireless fair scheduling with the compensation mechanism. Using queueing analysis, we derive performance parameters: average delay and packet loss rate, in closed-form expressions. These expressions are functions of the source, wireless channel and compensation mechanism parameters. Moreover, the trade-off relationship between delay and packet loss rate is revealed, which is controlled by the parameter of lagging bound. Numerical and simulation results are used to verify the validity of the modeling and analysis work.