| Article ID: | iaor20052168 |
| Country: | Netherlands |
| Volume: | 33 |
| Issue: | 2 |
| Start Page Number: | 187 |
| End Page Number: | 194 |
| Publication Date: | Mar 2005 |
| Journal: | Operations Research Letters |
| Authors: | Chen Hong, Wan Yat-wah |
| Keywords: | networks |
Two make-to-order firms, each modelled as a single-server queue, compete for a common stream of (potential) customers by setting their service capacities (rates) and service prices. Each customer maximizes her expected return by getting service from a firm or by balking. We completely characterize the Nash equilibrium of the competition.