507 / 2024-04-25 17:31:40

Anticipated Wait and Its Effects on Consumer Choice, Pricing, and Assortment Management

Anticipated Wait;,Consumer Choice,Pricing, and Assortment Management

We adopt the widely used multinomial logit (MNL) model as a starting point and incorporate the anticipated wait into consumers’ decision making. The derived model, referred to as the MNL with wait model, is a solution of the rational expectation equilibrium and is capable of capturing the effects of negative externality induced by anticipated wait that may change the substitution patterns dramatically.