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Congestion-Prone Services Under Quality Competition

A Microeconomic Analysis

  • Dong-Joo Moon

Part of the Advances in Spatial Science book series (ADVSPATIAL)

Table of contents

  1. Front Matter
    Pages i-xvii
  2. Service Demand of Consumers

  3. Cost Analyses for Congestion-Prone Service Systems

    1. Front Matter
      Pages 121-121
    2. Dong-Joo Moon
      Pages 123-151
  4. Decisions of Congestion-Prone Service Firms

    1. Front Matter
      Pages 179-179
    2. Dong-Joo Moon
      Pages 181-208
    3. Dong-Joo Moon
      Pages 239-274
  5. Social Welfare Issues for Congestion-Prone Services

    1. Front Matter
      Pages 275-275
    2. Dong-Joo Moon
      Pages 359-365
    3. Dong-Joo Moon
      Pages 367-415
  6. Back Matter
    Pages 417-424

About this book

Introduction

This study presents new microeconomic analyses of congestion-prone services that comprise most private and public services at the final consumption stage. It accounts for two distinctive features of congestion-prone services: the discrepancy between capacity and throughput, and service quality competition. To accommodate these features, a series of new decision-making theorems for consumers and suppliers is developed. The resulting demand and cost functions incorporate service time as the variable that reflects congestion and service quality. In market equilibrium, interactions between consumers and firms endogenously determine the industrial organization type of each firm and thus allow the coexistence of multiple industrial organization types in the same market. Efficiency of resource allocation is assessed by applying two different criteria: service quality diversity throughout the market and Pareto optimality in each submarket.

Keywords

Congestion Industrial Organization Resource Allocation Efficiency Service Q uality Service Time

Authors and affiliations

  • Dong-Joo Moon
    • 1
  1. 1., Institute for Environmental PlanningSeoul National UniversityGangnam-Gu, SeoulKorea, Republic of (South Korea)

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-642-20189-9
  • Copyright Information Springer Berlin Heidelberg 2012
  • Publisher Name Springer, Berlin, Heidelberg
  • eBook Packages Business and Economics
  • Print ISBN 978-3-642-20188-2
  • Online ISBN 978-3-642-20189-9
  • Series Print ISSN 1430-9602
  • Buy this book on publisher's site