| Article ID: | iaor20119263 |
| Volume: | 39 |
| Issue: | 5 |
| Start Page Number: | 390 |
| End Page Number: | 396 |
| Publication Date: | Sep 2011 |
| Journal: | Operations Research Letters |
| Authors: | Johari Ramesh, Weintraub Gabriel Y, DiPalantino Dominic |
| Keywords: | competition |
In service industries, firms can offer different contractual agreements. Firms can offer a guaranteed service level or a ‘best effort’ contract. We show how these different contracts change the intensity of price competition. Competition is intensified when firms choose to offer service level guarantees.