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The Effect of a Service Experience Cost on a Queueing System

Author

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  • Xuelu Zhang
  • Qing Ma
  • Tien Van Do

Abstract

In this work, the authors consider the effect of a service experience cost (SE cost) on customer behaviour in the M/M/1 queueing system. Based on customer individual equilibrium strategy, social welfare is also analyzed in unobservable and observable cases. The SE cost decreases the equilibrium joining probability and social welfare in an unobservable case. However, there might exist multiple individual equilibrium thresholds in an observable case. Furthermore, numerical results show that the SE cost can be used as a feasible policy to make an incentive for customers and regulate the system for improved social welfare in some scenarios.

Suggested Citation

  • Xuelu Zhang & Qing Ma & Tien Van Do, 2021. "The Effect of a Service Experience Cost on a Queueing System," Discrete Dynamics in Nature and Society, Hindawi, vol. 2021, pages 1-9, November.
    • Handle: RePEc:hin:jnddns:6223808
    DOI: 10.1155/2021/6223808
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