文章基本信息

标题：When Fixed Price Meets Priority Auctions: Competing Firms with Different Pricing and Service Rules
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作者：Jiayang Gao ; Krishnamurthy Iyer ; Huseyin Topaloglu 等
期刊名称：Stochastic Systems
印刷版ISSN：1946-5238
出版年度：2019
卷号：9
期号：1
页码：47-80
DOI：10.1287/stsy.2018.0021
语种：English
出版社：Institute for Operations Research and the Management Sciences (INFORMS), Applied Probability Society
摘要：We consider a service system with two competing firms offering service via two different pricing and service rules. With the fixed price firm, customers obtain service at a fixed price and have homogeneous expected waiting times. With the bid-based firm, customers submit a bid to obtain service, incur expected waiting times decreasing in their bids, and make payments equal to their bids. We assume the customers are heterogeneous, with different waiting costs, and choose the firm from which to obtain service strategically on arrival. We establish the existence and uniqueness of a symmetric equilibrium for the customers’ decision problem for any given fixed and reserve price set by the two firms and characterize the structure of the resulting equilibrium strategy. In particular, we show that the customers’ equilibrium strategy has a simple threshold structure, where customers with either high or low waiting cost choose to obtain service from the bid-based firm, whereas those with moderate waiting cost choose to obtain service from the fixed price firm. We use this characterization of the equilibrium strategy to study the price competition between the two firms and show that there exists a mixed Nash equilibrium. Moreover, we analyze price and capacity competition between the firms in a limiting regime where the customer arrival rate and the service capacities increase proportionally and show that this competition inherently favors the bid-based firm.
关键词：pricing;marketing;competition