In this work we model the relationship between the capacity and the Quality of Service (QoS) offered by the firm in a competitive scenario of two firm’s working to maximize their profits. Using simple queueing theoretic models we study the sensitivity of a firm’s market share to price, capacity and market size. Our preliminary studies yield important properties of the equilibrium solution which...

Private-order market institutions founded on trust-based relational contracts suffer adverse selection and moral hazard problems, while public-order market institutions have a limited capacity to enforce contracts. We model agent selection between contract enforcement institutions and demonstrate that the state’s contract enforcement capacity is complementary to private-order contract enforceme...

Electronic business (e-business) brings many new opportunities as well as several challenges to business organizations. Many organizations have turned to customer relationship management (CRM) to leverage their market orientation, customiz e their products and services, and build loyalty programs. However, capitalizing on the opportunities will require organizational investments in information ...

Much like in other semiconductor environments, DRAM manufacturers face significant demand uncertainty before production and capacity decisions can be implemented. This paper investigates the role and assesses the value of market information in the DRAM manufacturing industry. A dynamic oligopoly model of competition with capacity constraints is developed, where firms hold information about dema...

Merchant electricity transmission investment is a practically relevant example of an unregulated investment with monopoly properties. However, while leaving the investment decision to the market, the regulator may decide to prohibit capacity withholding with a must-offer provision. This paper examines the welfare effects of a must-offer provision prior to the capacity choice, given three reason...

This study uses an agent-based computational labor market framework to experimentally study the relationship between job capacity, job concentration, and market power. Job capacity is measured by the ratio of potential job openings to potential work o!ers, and job concentration is measured by the ratio of work suppliers to employers. For each experimental treatment, work suppliers and employers...

We model the relationship between capacity, Quality of Service (QoS) and offered prices of service providers in a competitive network services market. Capacity and QoS are linked through simple queueing formulae while QoS and price are coupled through distributions on customer preferences. We study the sensitivity of market share of providers to price, capacity and market size. We revisit the n...