Scale economies are commonplace in operations, yet because of analytical challenges, relatively little is known about how firms should compete in their presence. This paper presents a model of competition between two firms that face scale economies; (i.e., each firm's cost per unit of demand is...

We consider a monopolist expert offering a service with a "credence" characteristic. A credence service is one in which the customer cannot verify, even after a purchase, whether or not the amount of prescribed service was appropriate; examples include legal, medical, or consultancy services, and...

Various models have been developed over the years to analyze the many facets of the flexibility of production and operations systems. This paper proposes a general framework for the modeling and analysis of flexibility. The argument hinges upon the distinction between flexibility---a property of...

This article studies the optimal prices and service quality grades that a queuing system---the "firm"---provides to heterogeneous, utility-maximizing customers who measure quality by their experienced delay distributions. Results are threefold: First, delay cost curves are introduced that allow...

We examine how service should be divided and scheduled when it can be provided in multiple separate segments. We analyze variants of this problem using a model with a conventional function describing the waiting cost, that is modified to account for some aspects of the psychological cost of...