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 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 develops an analytical model to investigate the impact of governmental funding of higher education on educational outcomes including tuition, graduation rates, and enrollment. Assuming that students make an enrollment decision based on tuition, graduation rate, and labor market...