Effect of Service Supply Chain with Sensitive Demand Under the Dynamic Game

Abstract

In order to discusses the ratchet effects and the reputation effects in service supply chain under the multi-period dynamic game. The paper depicts the model, and builds a multi-period dynamic game programming model. Such decision-making as quality efforts and revenue sharing coefficient are resolved. It analyzes the ratchet effect and the reputation effect due to the dealer’s revenue. It summarizes the meaning of all effects with reputation and ratchet. We can find: the hazard risk in service supply chain is reduced in long-term dynamic game. The effect is the same as that under the asymmetric information.