Abstract
The purpose is to propose the structure models of chain to chain competition, and disclose the impact of price competition and service competition and cost of service on the vertical structure choice. Furthermore, we characterized the vertical structure difference of service cost varying from high to medium and low level. The results suggested that, firstly, in the low cost service industries, service competition was more critical to vertical structure choice than price competition. Second, in the medium cost service industries, service competition and price competition were both important to vertical structure choice. Finally, in high cost service industries, price competition are more critical to vertical structure choice.
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