Publication Type
Journal Article
Version
publishedVersion
Publication Date
12-2007
Abstract
The success of firms engaged in e-commerce depends on their ability to understand and exploit the dynamics of the market. One component of this is the ability to extract maximum profit and minimize costs in the face of the harsh competition that the internet provides. We present a general framework for modeling the competitive equilibrium across two firms, or across a firm and the market as a whole. Within this framework, we study pricing choices and analyze the decision to outsource IT capability. Our framework is novel in that it allows for any number of distributions on usage levels, price–QoS tradeoffs, and price and cost structures.
Keywords
e-commerce, non-cooperative Nash equilibrium, outsourcing, pricing, QoS
Discipline
Computer Engineering | E-Commerce
Research Areas
Intelligent Systems and Optimization
Areas of Excellence
Digital transformation
Publication
Computers and Operations Research
Volume
34
Issue
12
First Page
3541
Last Page
3559
ISSN
0305-0548
Identifier
10.1016/j.cor.2006.01.019
Publisher
Elsevier
Citation
DUBE, Parijat; LIU, Zhen; WYNTER, Laura; and XIA, Cathy.
Competitive equilibrium in e-commerce: Pricing and outsourcing. (2007). Computers and Operations Research. 34, (12), 3541-3559.
Available at: https://ink.library.smu.edu.sg/sis_research/10268
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1016/j.cor.2006.01.019