This paper studies the equilibrium behavior of customers in the M/M/1 queue with setup times, breakdowns and repairs. The server is turned off whenever the system is empty. Once a customer arrives to an empty system, the server begins an exponential setup time to start service again. The lifetime of the server is assumed to be exponentially distributed and once the server breaks down, it will be sent for repair immediately, and the repair time is also exponentially distributed. We consider separately the equilibrium threshold strategies for the fully observable case and mixed strategies for the partially observable and fully unobservable cases. Some numerical examples are presented to illustrate the effect of the information levels and several parameters on the customers’ equilibrium and optimal strategies.
