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To incentivize the fast server or not? Firm's dilemma when queue signals service rate in high-contact services
Published in Elsevier B.V.
2021
Volume: 49
   
Issue: 5
Pages: 639 - 644
Abstract
We consider an M/M/1 high-contact service queue with unknown service rates. Two types of customers, informed and uninformed, making strategic balking decisions, queue at the facility. We find that informed customers follow a threshold strategy and uninformed customers follow a non-threshold strategy in equilibrium. We suggest that the firm should incentivize the fast server such that the quality of service is not compromised. © 2021 Elsevier B.V.
About the journal
JournalOperations Research Letters
PublisherElsevier B.V.
ISSN01676377