Bhargava, Hemant K.; Sun, Daewon - In: European Journal of Operational Research 191 (2008) 3, pp. 1189-1204
This article examines how performance-contingent pricing schemes with long-term statistical performance guarantees can be applied to many IT services. We study two forms of performance-contingent pricing, with rebate proportional to failure rate and fixed rebate for below-threshold performance....