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What is the Long-Term Value of Reliability?

Author

Listed:
  • Chenyu Qiu
  • Xu Kuang
  • Inessa Liskovich
  • Ali Rauh
  • Stefan Wager

Abstract

We describe Chronos LTV, a system to measure the long-term impact of delays and other service defects on key business metrics. We use Markov decision processes to model customer interactions over time, and formalize our target estimand as the marginal policy effect with respect to moving the average delay rate. Given this setup, we show that we can identify long-term effects under a sequential unconfoundedness assumption where delays are as good as random given observed order characteristics; and can estimate these effects using a simple covariate-balancing algorithm.

Suggested Citation

  • Chenyu Qiu & Xu Kuang & Inessa Liskovich & Ali Rauh & Stefan Wager, 2026. "What is the Long-Term Value of Reliability?," Papers 2606.11526, arXiv.org.
    • Handle: RePEc:arx:papers:2606.11526
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    File URL: http://arxiv.org/pdf/2606.11526
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