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...