Components Incompatibility, A Way for Monopolization in Services

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SHAHBAZI KIUMARS; BADPEYMA JALIL

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Journal: Journal of Economic Modelling Year:2018 | Volume:12 | Issue:2 (42) Page(s): 73-97

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Information Journal Paper

Title

Components Incompatibility, A Way for Monopolization in Services

Author(s)

SHAHBAZI KIUMARS | BADPEYMA JALIL | Issue Writer Certificate

Keywords

JEL Classification:L15Q1

L96Q2

D21.Keywords:IncompatibilityQ1

MonopolyQ1

Production EquipmentQ1

Static Game with Imperfect InformationQ1

Abstract

The purpose of this article is to achieve the compatibility equilibrium of components. For this purpose, the components compatibility was investigated in the Production Equipment producers. In this research, a game has been designed in three stages with considering the available alternatives for equipment producers and service providers, in which the firms decide about compatibility before price competition in selling stages and providing services. Then, by means of static games solution with imperfect information, the game equilibrium has been exploited. The modeling results showed that the component incompatibility is the game equilibrium and the firms with monopolization incentives in providing the after sale services, produce own provided outputs under an incompatible situation. Based on results, is suggested the Production Equipment byers, if possible before purchase, evaluate the rate of breakdown of Production Equipment, and also, concurrent with purchasing the system, buy the spare parts.

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APA: Copy

SHAHBAZI, KIUMARS, & BADPEYMA, JALIL. (2018). Components Incompatibility, A Way for Monopolization in Services. ECONOMIC MODELLING, 12(2 (42) ), 73-97. SID. https://sid.ir/paper/176275/en

Vancouver: Copy

SHAHBAZI KIUMARS, BADPEYMA JALIL. Components Incompatibility, A Way for Monopolization in Services. ECONOMIC MODELLING[Internet]. 2018;12(2 (42) ):73-97. Available from: https://sid.ir/paper/176275/en

IEEE: Copy

KIUMARS SHAHBAZI, and JALIL BADPEYMA, “Components Incompatibility, A Way for Monopolization in Services,” ECONOMIC MODELLING, vol. 12, no. 2 (42) , pp. 73–97, 2018, [Online]. Available: https://sid.ir/paper/176275/en

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