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Service shutdowns -- extended disruptions of operations -- caused by exogenous events are on the rise. Such shutdowns pose major challenges for service providers, customers, and policymakers. Providers tend to push for vouchers as a means of service recovery to limit bankruptcy risk, whereas...
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Many services are delivered to a (large) number of customers simultaneously within a confined zone (e.g., restaurants, resorts, trains, and airplanes). Under unexpected high demand, customers experience discomfort from two major sources: (a) the sardine effect that arises when too many customers...
Persistent link: https://www.econbiz.de/10014211469
Service providers and their customers are sometimes victims of failures caused by exogenous factors such as unexpected bad weather, power outages, or labor strikes. When such no-fault failures occur in confined zones, service providers may confine customers against their will if making...
Persistent link: https://www.econbiz.de/10014164793
Service providers and their customers are sometimes victims of failures caused by exogenous factors such as unexpected bad weather, power outages, or labor strikes. When such no-fault failures occur in confined zones, service providers may confine customers against their will if making...
Persistent link: https://www.econbiz.de/10013121466
Persistent link: https://www.econbiz.de/10003705550
Should a provider deliver a reliable service or should it allow for occasional service failures? This paper derives conditions under which randomizing service quality can benefit the provider and society. In addition to cost considerations, heterogeneity in customer damages from service failures...
Persistent link: https://www.econbiz.de/10011554830
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This paper develops an analytical model to investigate the impact of governmental funding of higher education on educational outcomes including tuition, graduation rates, and enrollment. Assuming that students make an enrollment decision based on tuition, graduation rate, and labor market...
Persistent link: https://www.econbiz.de/10012250083