Abstract
This paper deals with an observable batch service queueing system in which customers rationally choose whether to form a batch with another customer or not, in addition to deciding whether or not to join the queue. When choosing whether to form a batch, a customer in an incomplete batch decides on an optimal waiting time for the next customer to arrive and share the service fee. When choosing whether to join the queue, customers follow a threshold strategy, which depends on the strategy identified in the former game.
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