IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v215y2011i1p289-300.html
   My bibliography  Save this article

Telecom service provider portal: Revenue sharing and outsourcing

Author

Listed:
  • Chakravarty, Amiya K.
  • Werner, Adrian S.

Abstract

Early mobile phones only provided voice transmission, for a fee. They have now evolved into voice and online data portals for providing additional services through 3rd party vendors. These service providers (vendors) are given access to a customer base "owned" by the mobile phone companies, for a fee. Typically customers make two payments: to the mobile phone company for phone services and to the 3rd party vendors for specific services bought from them. Variations to the above business model may involve outsourcing the online portal and/or acquiring customers from other independent portals. For these scenarios, we study how the fees for phone service and customer access are established and how they may relate to the prices of vendor services, and which services should be located on the portal - all in a game-theoretic context. Our results prove that it is possible to reorganize revenue flows through an invoicing process that may benefit the mobile network operator more than the other parties. In addition, we establish optimality in terms of the number of vendors on the portal, and determine a rank-ordering of vendors for their inclusion into the portal.

Suggested Citation

  • Chakravarty, Amiya K. & Werner, Adrian S., 2011. "Telecom service provider portal: Revenue sharing and outsourcing," European Journal of Operational Research, Elsevier, vol. 215(1), pages 289-300, November.
    • Handle: RePEc:eee:ejores:v:215:y:2011:i:1:p:289-300
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221711003869
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Doukidis, Georgios I. & Pramatari, Katerina & Lekakos, Georgios, 2008. "OR and the management of electronic services," European Journal of Operational Research, Elsevier, vol. 187(3), pages 1296-1309, June.
    2. R. Venkatesh & Wagner Kamakura, 2003. "Optimal Bundling and Pricing under a Monopoly: Contrasting Complements and Substitutes from Independently Valued Products," The Journal of Business, University of Chicago Press, vol. 76(2), pages 211-232, April.
    3. Timothy W. McGuire & Richard Staelin, 1983. "An Industry Equilibrium Analysis of Downstream Vertical Integration," Marketing Science, INFORMS, vol. 2(2), pages 161-191.
    4. Yunzeng Wang & Li Jiang & Zuo-Jun Shen, 2004. "Channel Performance Under Consignment Contract with Revenue Sharing," Management Science, INFORMS, vol. 50(1), pages 34-47, January.
    5. Office of Health Economics, 2007. "The Economics of Health Care," For School 001490, Office of Health Economics.
    6. Awad Mataria & Stéphane Luchini & Yousef Daoud & Jean‐Paul Moatti, 2007. "Demand assessment and price‐elasticity estimation of quality‐improved primary health care in palestine: a contribution from the contingent valuation method," Health Economics, John Wiley & Sons, Ltd., vol. 16(10), pages 1051-1068, October.
    7. Gérard P. Cachon & Martin A. Lariviere, 2005. "Supply Chain Coordination with Revenue-Sharing Contracts: Strengths and Limitations," Management Science, INFORMS, vol. 51(1), pages 30-44, January.
    8. Awad Mataria & Stéphane Luchini & Yousef Daoud & Jean-Paul Moatti, 2007. "Demand assessment and price-elasticity estimation of quality-improved primary health care in palestine: a contribution from the contingent valuation method," Health Economics, John Wiley & Sons, Ltd., vol. 16(10), pages 1051-1068.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wang, Wei & Feng, Lipan & Li, Yongjian & Xu, Fangchao & Deng, Qianzhou, 2020. "Role of financial leasing in a capital-constrained service supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).
    2. Fouad El Ouardighi & Gary Erickson & Dieter Grass & Steffen Jørgensen, 2016. "Contracts and Information Structure in a Supply Chain with Operations and Marketing Interaction," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 18(04), pages 1-36, December.
    3. Liu, He & Qiao, Han & Wang, Shouyang & Li, Yuze, 2019. "Platform Competition in Peer-to-Peer Lending Considering Risk Control Ability," European Journal of Operational Research, Elsevier, vol. 274(1), pages 280-290.
    4. Ma, Xiaoyu & Huang, Feiteng & Li, Xue & Zhang, Jihong, 2024. "Optimal contract design in mobile service industry considering network congestion," International Journal of Production Economics, Elsevier, vol. 267(C).
    5. Minhyuk Sur & Deok-Joo Lee & Kyung-Taek Kim, 2019. "Optimal revenue sharing in platform markets: a Stackelberg model," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 18(4), pages 317-331, August.
    6. Wang, Yulan & Wallace, Stein W. & Shen, Bin & Choi, Tsan-Ming, 2015. "Service supply chain management: A review of operational models," European Journal of Operational Research, Elsevier, vol. 247(3), pages 685-698.
    7. Sangita Poddar & Tanmoyee Banerjee(Chatterjee) & Swapnendu Banerjee, 2023. "Taxation on duopoly e-commerce platforms and their search environments," SN Business & Economics, Springer, vol. 3(8), pages 1-20, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Francisco Rosas & Santiago Acerenza & Peter F. Orazem, 2020. "Optimal pricing strategies for a cluster of goods: own- and cross-price effects with correlated tastes," Applied Economics, Taylor & Francis Journals, vol. 52(7), pages 742-755, February.
    2. Adida, Elodie & Ratisoontorn, Nantaporn, 2011. "Consignment contracts with retail competition," European Journal of Operational Research, Elsevier, vol. 215(1), pages 136-148, November.
    3. Pierre-Alexandre Mahieu & Romain Craste & Bengt Kriström & Pere Riera, 2014. "Non-market valuation in France: An overview of the research activity," Working Papers hal-01087365, HAL.
    4. Yao, Z. & Leung, Stephen C.H. & Lai, K.K., 2008. "Manufacturer's revenue-sharing contract and retail competition," European Journal of Operational Research, Elsevier, vol. 186(2), pages 637-651, April.
    5. Danyliv, Andriy & Groot, Wim & Gryga, Irena & Pavlova, Milena, 2014. "Willingness and ability to pay for physician services in six Central and Eastern European countries," Health Policy, Elsevier, vol. 117(1), pages 72-82.
    6. Hsieh, Chung-Chi & Wu, Cheng-Han, 2009. "Coordinated decisions for substitutable products in a common retailer supply chain," European Journal of Operational Research, Elsevier, vol. 196(1), pages 273-288, July.
    7. Hsieh, Chung-Chi & Chang, Yih-Long & Wu, Cheng-Han, 2014. "Competitive pricing and ordering decisions in a multiple-channel supply chain," International Journal of Production Economics, Elsevier, vol. 154(C), pages 156-165.
    8. Fang, Yaner & Shou, Biying, 2015. "Managing supply uncertainty under supply chain Cournot competition," European Journal of Operational Research, Elsevier, vol. 243(1), pages 156-176.
    9. Pyung-Hoi Koo, 2022. "A Capacity Cost-Sharing Contract for a Two-Stage Supply Chain with a Risk-Averse Supplier under a Bargaining Power," Sustainability, MDPI, vol. 14(4), pages 1-17, February.
    10. Li, Bai-Xun & Zhou, Yong-Wu & Li, Ji-zi & Zhou, Shi-ping, 2013. "Contract choice game of supply chain competition at both manufacturer and retailer levels," International Journal of Production Economics, Elsevier, vol. 143(1), pages 188-197.
    11. Cao, Qingning & Geng, Xianjun & Zhang, Jun, 2015. "Strategic Role of Retailer Bundling in a Distribution Channel," Journal of Retailing, Elsevier, vol. 91(1), pages 50-67.
    12. Bikram Ghosh & Subramanian Balachander, 2007. "Research Note--Competitive Bundling and Counterbundling with Generalist and Specialist Firms," Management Science, INFORMS, vol. 53(1), pages 159-168, January.
    13. Tianqin Shi & Dilip Chhajed & Zhixi Wan & Yunchuan Liu, 2020. "Distribution Channel Choice and Divisional Conflict in Remanufacturing Operations," Production and Operations Management, Production and Operations Management Society, vol. 29(7), pages 1702-1719, July.
    14. à lvarez-Albelo, Carmen D. & Hernández-Martín, Raúl & Padrón-Fumero, Noemi, 2020. "The effects on tourism of airfare subsidies for residents: The key role of packaging strategies," Journal of Air Transport Management, Elsevier, vol. 84(C).
    15. Fang, Xiang & Gavirneni, Srinagesh & Rao, Vithala R., 2013. "Supply chains in the presence of store brands," European Journal of Operational Research, Elsevier, vol. 224(2), pages 392-403.
    16. Zhisong Chen & Li Fang & Shong-Iee Ivan Su, 2021. "The value of offline channel subsidy in bricks and clicks: an O2O supply chain coordination perspective," Electronic Commerce Research, Springer, vol. 21(2), pages 599-643, June.
    17. Zhang, Dengfeng & de Matta, Renato & Lowe, Timothy J., 2010. "Channel coordination in a consignment contract," European Journal of Operational Research, Elsevier, vol. 207(2), pages 897-905, December.
    18. Yun Fong Lim & Yunzeng Wang & Yue Wu, 2015. "Consignment Contracts with Revenue Sharing for a Capacitated Retailer and Multiple Manufacturers," Manufacturing & Service Operations Management, INFORMS, vol. 17(4), pages 527-537, October.
    19. Hu, Benyong & Xu, Dong & Meng, Chao, 2017. "Inconsistency of a retailer's optimal policies and channel performance under revenue sharing contracts," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 53-65.
    20. Cao, Erbao & Wan, Can & Lai, Mingyong, 2013. "Coordination of a supply chain with one manufacturer and multiple competing retailers under simultaneous demand and cost disruptions," International Journal of Production Economics, Elsevier, vol. 141(1), pages 425-433.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:215:y:2011:i:1:p:289-300. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.