Strategic interactions in service supply chain with horizontal competition (Q456911)

The article considers a model for strategic interaction issues in service supply chains. The authors begin with a detailed introduction where the fundamentals of service science and supply chains are outlined, which is followed by a presentation of the proposed model with a supply chain consisting of two service vendors and one service integrator. This is followed by the case where there is a decentralized strategic interaction of the service supply chain where all actors have bargaining power to maximize their profits. Several properties of the proposed model are presented and proven, including equilibrium prices, optimal reaction response functions and the Stackelberg equilibrium. The paper concludes with a section containing several useful numerical examples and a mathematical annex.