Service provision decisions of competitive manufacturers: From service spillover perspective
研究两个竞争制造商在共享零售商的两级供应链中是否提供服务的战略选择，发现双方都提供服务总是最优，但仅一方提供时结果取决于市场规模、服务成本系数和溢出强度。
This paper investigates competing manufacturers’ strategic choice of service provision in a two-level supply chain composed two manufacturers and one common retailer. Our results indicate that the strategy that two competing manufacturers provide services is always the dominant choice, and two competing manufacturers could have the highest profit in that case. But when only one of them provides services, the result is related to the potential market size, the unit service cost coefficient and the service spillover intensity. Finally, through the cost sharing and quantity competition extensions, we find the Pareto regions of cost sharing under the equilibrium strategy, and there will be multiple Nash equilibrium regions under the quantity competition.