Show simple item record

dc.contributor.authorLee, Khai S.en_GB
dc.contributor.authorNg, Irene C. L.en_GB
dc.contributor.departmentNational University of Singapore (Ng is now at University of Exeter)en_GB
dc.date.accessioned2008-07-18T11:22:27Zen_GB
dc.date.accessioned2011-01-25T10:27:07Zen_GB
dc.date.accessioned2013-03-19T16:03:11Z
dc.date.issued2001-11-21en_GB
dc.description.abstractShould service firms sell in advance? Using a theoretical approach, we study the optimality of advanced sale of capacity for a monopolistic service firm and examine the impact of market price sensitivity on the optimal price and capacity allocations for advanced sale. We show that when firms undertake advanced sale, capacity utilization and profits are higher even though prices for sale in advance are discounted. In addition, we show that optimal pricing and capacity allocations for advanced sale depend on the expected price sensitivity at the time of consumption. When price sensitivity at the point of consumption is expected to be low (unchanged), it is optimal to allocate more (less) capacity for sale at time of consumption than in advance. Although optimal price and capacity allocations in advanced sale result in excess capacity, we show that having excess capacity is a strategic decision in that it is a dominant strategy.en_GB
dc.identifier.citationVol. 54 (3), pp. 219-225en_GB
dc.identifier.doi10.1016/S0148-2963(00)00119-3en_GB
dc.identifier.urihttp://hdl.handle.net/10036/32435en_GB
dc.language.isoenen_GB
dc.publisherElsevieren_GB
dc.subjectadvanced salesen_GB
dc.subjectservice capacityen_GB
dc.titleAdvanced sale of service capacities: a theoretical analysis of the impact of price sensitivity on pricing and capacity allocationsen_GB
dc.typeArticleen_GB
dc.date.available2008-07-18T11:22:27Zen_GB
dc.date.available2011-01-25T10:27:07Zen_GB
dc.date.available2013-03-19T16:03:11Z
dc.identifier.issn0148-2963en_GB
dc.identifier.journalJournal of Business Researchen_GB


Files in this item

This item appears in the following Collection(s)

Show simple item record