Abstract
We consider a model of customer's choice between companies producing a single good that varies only in price and quality. The quality (durability) of the good is specified exogenously while the price is determined endogenously. Customers can purchase one unit of the good from any of the companies. Each company serves customers using a single-server queueing model with a first-come-first-serve queue. The customer incurs a waiting cost per unit time. After receiving the good, the customer consumes it which takes a random time with a distribution determined by the quality of the good purchased. After consumption, the customer again purchases another unit of the good. It is assumed that the queues are not visible to the customers. The customers select companies so that their expected expenditure per unit time is minimized.
| Original language | English |
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| Title of host publication | 2012 Southwest Decision Sciences Institute Conference |
| Subtitle of host publication | proceedings |
| Editors | Mohan Rao |
| Place of Publication | Houston, TX |
| Publisher | Southwest Decision Sciences Institute |
| Pages | 1-8 |
| Number of pages | 8 |
| Publication status | Published - 2012 |
| Externally published | Yes |
| Event | Southwest Decision Sciences Institute Conference - New Orleans, LA Duration: 1 Mar 2012 → 3 Mar 2012 |
Conference
| Conference | Southwest Decision Sciences Institute Conference |
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| City | New Orleans, LA |
| Period | 1/03/12 → 3/03/12 |