Should a provider deliver a reliable service or should it allow for occasional service failures? This paper derives conditions under which randomizing service quality can benefit the provider and society. In addition to cost considerations, heterogeneity in customer damages from service failures...

Service providers and their customers are sometimes victims of failures caused by exogenous factors such as unexpected bad weather, power outages, or labor strikes. When such no-fault failures occur in confined zones, service providers may confine customers against their will if making...

Service shutdowns -- extended disruptions of operations -- caused by exogenous events are on the rise. Such shutdowns pose major challenges for service providers, customers, and policymakers. Providers tend to push for vouchers as a means of service recovery to limit bankruptcy risk, whereas...

This paper explores the benefits of letting customers escape from pre-purchased service contracts by offering refunds for cancellations. We show that such a policy creates opportunities for multiple selling in a capacity-constrained service - i.e., collecting cancellation fees from advance...