SERVICE TIME COMPETITION

• 成果类型: Article
• 署名作者: PNG, IPL; REITMAN, D
• 署名单位: University of California System; University of California Los Angeles; University System of Ohio; Ohio State University
• 刊物名称: RAND JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0741-6261
• DOI: 10.2307/2555978
• 发表日期: 1994
• 页码: 619-634
• 关键词: price-discrimination; INFORMATION; ECONOMICS; QUALITY

摘要

How can two physically identical gasoline stations differentiate themselves? In this article we develop and test a model of service time competition: some stations set higher prices and thereby offer shorter queues, whereas other offer lower price and longer queues. We find that retail demand is sensitive to service time: customers are, on average, willing to pay about 1% more for a 6% reduction in congestion. Consistent with the service time hypothesis, prices are more dispersed at stations facing more direct competition.