JOURNAL OF MARKETING DEVELOPMENT AND COMPETITIVENESS
A Note on Modeling Service Capacity Allocation under Varying
Intensities of Competition
Author(s): Hongkai Zhang, James Rauch
Citation: Hongkai Zhang, James Rauch, (2010) "A Note on Modeling Service Capacity Allocation under Varying Intensities of Competition, Vol. 5, Iss. 1, pp. 64 - 70
Article Type: Research paper
Publisher: North American Business Press
Based on a linear deterministic price response function, sales revenue is analytically determined for five alternative policies for allocating service capacity over a two-period planning horizon for a service provider in a competitive environment, in which the intensity of competition varies over time. A numerical study is conducted to compare the performances of the considered policies and examine the impacts of competition and price sensitivity.