The role of inventory in delivery-time competition
Management Science
Pricing and delivery-time performance in a competitive environment
Management Science
Customer Service Competition in Capacitated Systems
Manufacturing & Service Operations Management
A General Equilibrium Model for Industries with Price and Service Competition
Operations Research
The Impact of Quick Response in Inventory-Based Competition
Manufacturing & Service Operations Management
Dynamic Capacity Allocation to Customers Who Remember Past Service
Management Science
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When two firms compete for service-sensitive demands based on their product availability, their actions will affect the future market share reallocation. This problem was first studied by Hall and Porteus (2000) using a dynamic game model. We extend their work by incorporating a general demand model, which enables us to obtain properties that reveal the dynamics of the game and the behavior of the players. In particular, we provide conditions under which the market share of a firm has a positive value and give it an upper bound. We further extend the game competition model to an infinite-horizon setting. We prove that there exists a stationary equilibrium policy and that the dynamic equilibrium policy always converges to a stationary equilibrium policy. We demonstrate that demand patterns will dictate how firms compete rationally and show the likely outcomes of the competition.