Joining longer queues: Information externalities in queue choice

Joining longer queues: Information externalities in queue choice

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Article ID: iaor200970834
Country: United States
Volume: 11
Issue: 4
Start Page Number: 543
End Page Number: 562
Publication Date: Sep 2009
Journal: Manufacturing & Service Operations Management
Authors: ,
Keywords: behaviour
Abstract:

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 environment with random arrival and service times, customer behavior is reflected in the lengths of the queues that form at the individual servers. Therefore, queue lengths could signal two factors–potentially higher arrivals to the server or potentially slower service at the server. In this paper, we focus on both factors when customers' waiting costs are negligible. This allows us to understand how information externalities due to congestion impact customers' service choice behavior.

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