Analysis of Two-Tier Public Service System under Capacity Constraints
In some public service systems such as healthcare,to reduce the waiting time for customers,policy makers may allow the private service provider(or called the toll SP)to enter the market.However,when the total service capacity for the system is limited,the entrance of the toll SP may reduce the capacity of the public service provider(or called the free SP).Then whether or not introducing toll SP in the system can reduce the waiting time becomes an issue.In this paper,we investigate the impact of capacity constraint on the two-tier service system and study how to alleviate it when it is negative.The results show that when the total service capacity is insufficient,the two-tier service system yields less social welfare than the one-tier free system.When the total service capacity is sufficient,the two-tier service system may outperform the one-tier free system.In addition,if the service capacity constraint has a negative effect on the two-tier system,the policy maker such as the government can set an appropriate upper limit for the capacity of the toll SP to remove the negative effect.
OR in government Two-tier service system Capacity constraint Investment limit Queuing
Wuhua Chen Zhongsheng Hua Zhe George Zhang Xiaohong Chen
School of Business Central South University,Changsha,Hunan,410083,China School of Management Zhejiang University,Hangzhou,Zhejiang,310058,China Department of Decision Sciences Western Washington University,Bellingham,WA98225,USA & Beedie School
国际会议
河北秦皇岛
英文
136-138
2017-08-21（万方平台首次上网日期，不代表论文的发表时间）