Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2017.1421996
Quality competition and reputation of restaurants: the effects of capacity constraints
You-hua Chen
; College of Economics & Management and Guangdong Center for Rural Economic Studies, South China Agricultural University, Guangzhou, P.R. China
Qinying He
; College of Economics & Management and Guangdong Center for Rural Economic Studies, South China Agricultural University, Guangzhou, P.R. China
Krishna P. Paudel
; Department of Agricultural Economics and Agribusiness, Louisiana State University (LSU) and LSU Agricultural Center, Baton Rouge, LA, US
Sažetak
Capacity constraints have major effects on restaurant competition.
This article captures the impact of capacity constraints on quality and
quantity competition of restaurant industry by employing a two-stage
asymmetric capacity constraints model. There are several findings
from this study. First, results of this study indicate that reputation
difference increases total outputs and quality in equilibrium. Second,
capacity constraints decrease the consumer surplus (CS) as well as
social welfare (SW), but restaurants benefit from capacity constraints
sometimes. Third, capacity reduces both the quality and quantity
of the competitor. Furthermore, restaurants raise their prices if
consumers are quality-sensitive or lower the quality if consumers are
price-sensitive under capacity constraints. Fourth, this study compares
the total quality, CS, and SW under four cases: no restaurant faces
constraints, small restaurant faces constraints, big restaurant faces
constraints, and both small and big restaurants face constraints. The
total quality investment, CS, and SW are highest if a small restaurant
faces capacity constraints while the larger one does not.
Ključne riječi
Capacity constraints; game theory; price-sensitive; quality-sensitive; reputation
Hrčak ID:
200657
URI
Datum izdavanja:
3.12.2018.
Posjeta: 913 *