Strategic interactions in service supply chain with horizontal competition

X. Tang (), S. Fang and F. Cheng ()

TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, 2014, vol. 22, issue 2, 469-488

Abstract: We analyze strategic interaction issues that arise in service supply chain, such as consulting, service outsourcing, and travel service. To capture strategic interactions in service supply chain, we study a case where there are two service vendors providing competing service products and selling them through a common Service Integrator. In particular, we derive and compare equilibrium solutions (e.g. service prices, wholesale prices, service volumes) for the service supply chain under three different scenarios. We then study the effect of key parameters in the model upon the equilibrium solution using sensitivity analysis, and discuss our results along with a numerical experiment. Finally, future research direction is pointed out. Copyright Sociedad de Estadística e Investigación Operativa 2014

Keywords: Service supply chain; Service vendor; Service integrator; Strategic interaction; Competition; 91A80 (search for similar items in EconPapers)
Date: 2014
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DOI: 10.1007/s11750-012-0265-5

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