Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If You Use a Screen Reader

This content is available through Read Online (Free) program, which relies on page scans. Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.

Equilibrium in Servicing Industries: An Economic Application of Queuing Theory

Carl Davidson
The Journal of Business
Vol. 61, No. 3 (Jul., 1988), pp. 347-367
Stable URL: http://www.jstor.org/stable/2353044
Page Count: 21
  • Read Online (Free)
  • Download ($14.00)
  • Subscribe ($19.50)
  • Cite this Item
Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Equilibrium in Servicing Industries: An Economic Application of Queuing Theory
Preview not available

Abstract

The purpose of this article is to investigate the nature of equilibrium in markets in which service and waiting time play an important role. I show that if consumers do not know which firms are charging which prices, all firms charge the same price. If firms reveal their prices by advertising, the market separates with consumers with a high (low) cost of time buying from firms with high (low) prices and short (long) queues. If firms are allowed to advertise, they will, but they benefit from a collusive agreement restricting advertisement provided the agreement is enforceable.

Page Thumbnails

  • Thumbnail: Page 
347
    347
  • Thumbnail: Page 
348
    348
  • Thumbnail: Page 
349
    349
  • Thumbnail: Page 
350
    350
  • Thumbnail: Page 
351
    351
  • Thumbnail: Page 
352
    352
  • Thumbnail: Page 
353
    353
  • Thumbnail: Page 
354
    354
  • Thumbnail: Page 
355
    355
  • Thumbnail: Page 
356
    356
  • Thumbnail: Page 
357
    357
  • Thumbnail: Page 
358
    358
  • Thumbnail: Page 
359
    359
  • Thumbnail: Page 
360
    360
  • Thumbnail: Page 
361
    361
  • Thumbnail: Page 
362
    362
  • Thumbnail: Page 
363
    363
  • Thumbnail: Page 
364
    364
  • Thumbnail: Page 
365
    365
  • Thumbnail: Page 
366
    366
  • Thumbnail: Page 
367
    367