Consider a single-server service system with uncertain quality level (which is assumed to be binary). Both the server and the customers know the distribution of quality levels and are engaged in the following two-stage game. In the first stage, the server commits to a strategy (possibly mixed)...

We investigate the effect of competition on quality in regulated markets (e.g., health care, higher education, public utilities), using a Hotelling framework, in the presence of sluggish demand. We take a differential-game approach, and derive the open-loop solution (providers choose the optimal...