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http://dx.doi.org/10.7737/JKORMS.2013.38.2.159

Servitization Investment Decisions and a Dynamic Stability Analysis Based on a Two-Sided Market Model  

Ju, Hientaek (고려대학교 경영학과)
Rhim, Hosun (고려대학교 경영학과)
Publication Information
Journal of the Korean Operations Research and Management Science Society / v.38, no.2, 2013 , pp. 159-178 More about this Journal
Abstract
We present a model, combining servitization decision and a conventional two-sided market approaches, to understand expected outcomes and current market situations. We suppose an individual manufacturer participates in multiple platforms and decides whether to initiate servitization by considering latent profitability and risk. The analytical results from the model show that increasing competition within servitized companies lead to a servitization equilibrium, wherein the ratio of servitized companies in a market is stable, due to a gradual decline in relative benefits compared to non-servitized companies. This holds even in the case that the number of customer is increasing along the diffusion of servitization, under some restricted conditions.
Keywords
Two-sided Market; Evolutionary Game; Replicator Dynamics;
Citations & Related Records
Times Cited By KSCI : 3  (Citation Analysis)
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