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We study a closed queueing system that offers two types of service. Afterobtaining service the customer is active for a period of time whose randomduration depends on the service type: the longer service type enables longeractivity time. Users can choose a service type every time they are in service,and we are interested in the system efficiency which is the average number ofactive users. Applications include but are not limited to inventory control,electrical vehicle charging, mobile robotics charging, and machine maintenance.We prove that choosing the more efficient service is not always optimal. Wedemonstrate that if we constrain the strategy to be a threshold strategydepending on the number of inactive users, then the resulting maximalefficiency is not significantly lower than the maximal efficiency. We alsostudy individuals' optimal selection of the service type, and observe thatindividuals and the manager have opposite incentives: when the queue is long,individuals choose the long service, while the manager prefers the shortservice in this case.

Optimal and Self Selection of Service Type in a Queueing System where Long Service Postpones the Need for the Next Service