Promised Delivery Time and Capacity Games in Time-Based Competition
Abstract
We investigate firms' competitive behaviors in industries where customers are sensitive to both promised delivery time (PDT) and quality of service (QoS) measured by the on-time delivery rate. To study the competition in PDT at the marketing level, we construct an oligopoly game with an external QoS requirement. We show that there exists a unique Nash equilibrium, and the equilibrium QoS exhibits a switching surface structure with respect to...
Paper Details
Title
Promised Delivery Time and Capacity Games in Time-Based Competition
Published Date
Mar 1, 2011
Journal
Volume
57
Issue
3
Pages
599 - 610
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