IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v287y2020i3p1052-1061.html
   My bibliography  Save this article

Job Allocation and Profits in Service Production

Author

Listed:
  • Fandel, Günter
  • Trockel, Jan

Abstract

We consider a decision situation in which a buyer's non-recurring allocation of two heterogeneous and independent service jobs to three different types of suppliers – two specialists and one generalist – depends on different profits (payments) of the parties (players) involved. The decision situation is modelled as a non-cooperative game with simultaneous one-shot moves. The optimal decisions assigning and accepting the jobs are derived by determining Nash-equilibria in pure and mixed strategies.

Suggested Citation

  • Fandel, Günter & Trockel, Jan, 2020. "Job Allocation and Profits in Service Production," European Journal of Operational Research, Elsevier, vol. 287(3), pages 1052-1061.
    • Handle: RePEc:eee:ejores:v:287:y:2020:i:3:p:1052-1061
    DOI: 10.1016/j.ejor.2020.03.055
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S037722172030285X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejor.2020.03.055?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Ford W. Harris, 1990. "How Many Parts to Make at Once," Operations Research, INFORMS, vol. 38(6), pages 947-950, December.
    2. Adam M. Brandenburger & Harborne W. Stuart, 1996. "Value‐based Business Strategy," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 5(1), pages 5-24, March.
    3. Heuvel, Wilco van den & Borm, Peter & Hamers, Herbert, 2007. "Economic lot-sizing games," European Journal of Operational Research, Elsevier, vol. 176(2), pages 1117-1130, January.
    4. Abhijit V. Banerjee & Esther Duflo, 2000. "Reputation Effects and the Limits of Contracting: A Study of the Indian Software Industry," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(3), pages 989-1017.
    5. Jens Schmidt & Richard Makadok & Thomas Keil, 2016. "Customer-specific synergies and market convergence," Strategic Management Journal, Wiley Blackwell, vol. 37(5), pages 870-895, May.
    6. Anandasivam Gopal & Konduru Sivaramakrishnan & M. S. Krishnan & Tridas Mukhopadhyay, 2003. "Contracts in Offshore Software Development: An Empirical Analysis," Management Science, INFORMS, vol. 49(12), pages 1671-1683, December.
    7. Olivier Chatain & Peter Zemsky, 2007. "The Horizontal Scope of the Firm: Organizational Tradeoffs vs. Buyer-Supplier Relationships," Management Science, INFORMS, vol. 53(4), pages 550-565, April.
    8. Ravi Bapna & Anitesh Barua & Deepa Mani & Amit Mehra, 2010. "Research Commentary ---Cooperation, Coordination, and Governance in Multisourcing: An Agenda for Analytical and Empirical Research," Information Systems Research, INFORMS, vol. 21(4), pages 785-795, December.
    9. Thomas W. Malone, 1987. "Modeling Coordination in Organizations and Markets," Management Science, INFORMS, vol. 33(10), pages 1317-1332, October.
    10. Günter Fandel & Jan Trockel, 2016. "Investment and lot size planning in a supply chain: coordinating a just-in-time-delivery with a Harris- or a Wagner/Whitin-solution," Journal of Business Economics, Springer, vol. 86(1), pages 173-195, January.
    11. Abad, P. L., 1994. "Supplier pricing and lot sizing when demand is price sensitive," European Journal of Operational Research, Elsevier, vol. 78(3), pages 334-354, November.
    12. Jens Schmidt & Richard Makadok & Thomas Keil, 2016. "Customer-specific synergies and market convergence," Strategic Management Journal, Wiley Blackwell, vol. 37(9), pages 2003-2007, September.
    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. Fandel, Günter, 2023. "Application of Input Output Analysis to the Production of Services - An Overview," EconStor Preprints 298116, ZBW - Leibniz Information Centre for Economics.

    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. Fandel, Günter, 2023. "Application of Input Output Analysis to the Production of Services - An Overview," EconStor Preprints 298116, ZBW - Leibniz Information Centre for Economics.
    2. Günter Fandel & Jan Trockel, 2018. "Investments in supplier-specific economies of scope with two different services and different supplier characters: two specialists," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 26(1), pages 181-192, March.
    3. Manral, Lalit & Harrigan, Kathryn R., 2018. "The logic of demand-side diversification: Evidence from the US telecommunications sector, 1990–1996," Journal of Business Research, Elsevier, vol. 85(C), pages 127-141.
    4. Ravi Bapna & Anitesh Barua & Deepa Mani & Amit Mehra, 2010. "Research Commentary ---Cooperation, Coordination, and Governance in Multisourcing: An Agenda for Analytical and Empirical Research," Information Systems Research, INFORMS, vol. 21(4), pages 785-795, December.
    5. Niloofar Abolfathi & Simone Santamaria & Charles Williams, 2022. "How Does Firm Scope Depend on Customer Switching Costs? Evidence from Mobile Telecommunications Markets," Management Science, INFORMS, vol. 68(1), pages 316-332, January.
    6. David Anderson & Margrét V. Bjarnadóttir & Cristian L. Dezső & David Gaddis Ross, 2019. "On a Firm’s Optimal Response to Pressure for Gender Pay Equity," Organization Science, INFORMS, vol. 30(1), pages 214-231, February.
    7. Günter Fandel & Jan Trockel, 2016. "Investment and lot size planning in a supply chain: coordinating a just-in-time-delivery with a Harris- or a Wagner/Whitin-solution," Journal of Business Economics, Springer, vol. 86(1), pages 173-195, January.
    8. Douglas P. Hannah & Ron Tidhar & Kathleen M. Eisenhardt, 2021. "Analytic models in strategy, organizations, and management research: A guide for consumers," Strategic Management Journal, Wiley Blackwell, vol. 42(2), pages 329-360, February.
    9. Harborne W. Stuart, 2016. "Value Gaps and Profitability," Strategy Science, INFORMS, vol. 1(1), pages 56-70, March.
    10. Victor Manuel Bennett, 2013. "Organization and Bargaining: Sales Process Choice at Auto Dealerships," Management Science, INFORMS, vol. 59(9), pages 2003-2018, September.
    11. Markus Reisinger & Jens Schmidt & Nils Stieglitz, 2021. "How Complementors Benefit from Taking Competition to the System Level," Management Science, INFORMS, vol. 67(8), pages 5106-5123, August.
    12. Ezekiel Leo & Quang “Neo” Bui & Olayele Adelakun, 2022. "Outsourcing for Sustainable Performance: Insights from Two Studies on Achieving Innovation through Information Technology and Business Process Outsourcing," Sustainability, MDPI, vol. 14(4), pages 1-16, February.
    13. Tomasz Obloj & Peter Zemsky, 2015. "Value creation and value capture under moral hazard: Exploring the micro-foundations of buyer– supplier relationships," Strategic Management Journal, Wiley Blackwell, vol. 36(8), pages 1146-1163, August.
    14. Olivier Chatain & Denisa Mindruta, 2017. "Estimating Value Creation from Revealed Preferences: Application to Value-based Strategies," Strategic Management Journal, Wiley Blackwell, vol. 38(10), pages 1964-1985, October.
    15. Sunny Li Sun & Mike W. Peng & Weiqiang Tan, 2017. "Institutional relatedness behind product diversification and international diversification," Asia Pacific Journal of Management, Springer, vol. 34(2), pages 339-366, June.
    16. Lalit Manral & Kathryn R. Harrigan, 2023. "Geographic fragmentation and declining dominance: Yet another story of AT&T’s decline in the post-divestiture era," Journal of Evolutionary Economics, Springer, vol. 33(2), pages 605-644, April.
    17. Roger A McCain, 2013. "Value Solutions in Cooperative Games," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number 8528, August.
    18. Malgorzata Pankowska, 2019. "Information Technology Outsourcing Chain: Literature Review and Implications for Development of Distributed Coordination," Sustainability, MDPI, vol. 11(5), pages 1-28, March.
    19. Mingfeng Lin & Yong Liu & Siva Viswanathan, 2018. "Effectiveness of Reputation in Contracting for Customized Production: Evidence from Online Labor Markets," Management Science, INFORMS, vol. 64(1), pages 345-359, January.
    20. Deepa Mani & Anitesh Barua & Andrew B. Whinston, 2012. "An Empirical Analysis of the Contractual and Information Structures of Business Process Outsourcing Relationships," Information Systems Research, INFORMS, vol. 23(3-part-1), pages 618-634, September.

    More about this item

    Keywords

    OR in service production; Decision making; Supplier-buyer-relationships; Non-cooperative game theory;
    All these keywords.

    JEL classification:

    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

    Statistics

    Access and download statistics

    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:287:y:2020:i:3:p:1052-1061. 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.