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Job Allocation and Profits in Service Production

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  • Fandel, Günter
  • Trockel, Jan

Abstract

We consider a decision situation in which a buyer's non-recurring allocation of two heterogeneous and independent service jobs to three different types of suppliers – two specialists and one generalist – depends on different profits (payments) of the parties (players) involved. The decision situation is modelled as a non-cooperative game with simultaneous one-shot moves. The optimal decisions assigning and accepting the jobs are derived by determining Nash-equilibria in pure and mixed strategies.

Suggested Citation

  • Fandel, Günter & Trockel, Jan, 2020. "Job Allocation and Profits in Service Production," European Journal of Operational Research, Elsevier, vol. 287(3), pages 1052-1061.
    • Handle: RePEc:eee:ejores:v:287:y:2020:i:3:p:1052-1061
    DOI: 10.1016/j.ejor.2020.03.055
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    References listed on IDEAS

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    More about this item

    Keywords

    OR in service production; Decision making; Supplier-buyer-relationships; Non-cooperative game theory;
    All these keywords.

    JEL classification:

    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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