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Cost Analyses for the Basic Service System

In: Congestion-Prone Services Under Quality Competition

Author

Listed:
  • Dong-Joo Moon

    (Seoul National University)

Abstract

Congestion-prone service systems(or simply, service systems) refer to service production systems that exhibit or have the potential to exhibit congestion causing economic losses to its customers due to limited service capacity. While such congestion causes economic loss to customers, the decision to avoid congestion sometimes leads to excess capacity. Excess capacity, of course, brings its own adverse effects, including uneconomical investments and excessive operating costs to suppliers. It can therefore be said that service time, congestion in particular, is an important factor that affects both supplier and consumer choice, even though service time itself is not a factor contributing to supplier monetary costs.

Suggested Citation

  • Dong-Joo Moon, 2011. "Cost Analyses for the Basic Service System," Advances in Spatial Science, in: Congestion-Prone Services Under Quality Competition, edition 127, chapter 0, pages 123-151, Springer.
    • Handle: RePEc:spr:adspcp:978-3-642-20189-9_6
    DOI: 10.1007/978-3-642-20189-9_6
    as

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