Ilmakunnas, Pekka - In: Managerial and Decision Economics 23 (2002) 2, pp. 69-82
A model of service duopoly is formulated, where the arrival of customers and their service time in the firm are stochastic. The firms first choose the service capacity, and given the capacity they then choose the price in a Bertrand competition. Capacity choices have a negative externality on...