We study how rational customers choose between two congested service facilities with finite buffer space and unknown service value when waiting is expensive. Customers observe an imperfect private signal indicating which service facility may provide more service value, as well as the queue...

A classic example that illustrates how observed customer behavior impacts other customers' decisions is the selection of a restaurant whose quality is uncertain. Customers often choose the busier restaurant, inferring that other customers in that restaurant know something that they do not. In an...