Working Papers

Why Customer Service Frustrates Consumers: Using a Tiered Organizational Structure to Exploit Hassle Costs

Anthony Dukes and Yi Zhu

Sep 24, 2018

Develops a game theoretical model of the complaint process in which customer claims are heard and evaluated by the CSO, and studies the micro-economic incentives of a dissatisfied customer seeking compensatory redress from a firm’s CSO. Explores the relationship between a tiered CSO and the firm’s pricing and quality decisions.

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