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Towards the Consideration of Performance Risks for the Design of Service Offers

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Exploring Services Science (IESS 2014)

Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 169))

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Abstract

This work analyzes an outsourcing provider’s challenge to design optimal service offers in a setting in which future service performance is uncertain and the provider is penalized or rewarded for deviating negatively or positively from performance guarantees. In particular, we address the question how outsourcing providers with different risk attitudes should mitigate service performance risks by incorporating uncertainty premiums into service prices. The problem is studied in the light of service incident related penalty and reward functions that tie payments to the adverse financial impact a service customer incurs from performance degradations.

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Author information

Authors and Affiliations

  1. Karlsruhe Service Research Institute, Karlsruhe Institute of Technology, Englerstr. 11, 76131, Karlsruhe, Germany

    Björn Schmitz, Axel Kieninger, Gerhard Satzger & Hansjörg Fromm

Authors
  1. Björn Schmitz
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  2. Axel Kieninger
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  3. Gerhard Satzger
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  4. Hansjörg Fromm
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Editor information

Editors and Affiliations

  1. University of Geneva, Geneva, Switzerland

    Mehdi Snene  & Michel Leonard  & 

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Schmitz, B., Kieninger, A., Satzger, G., Fromm, H. (2014). Towards the Consideration of Performance Risks for the Design of Service Offers. In: Snene, M., Leonard, M. (eds) Exploring Services Science. IESS 2014. Lecture Notes in Business Information Processing, vol 169. Springer, Cham. https://doi.org/10.1007/978-3-319-04810-9_9

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  • DOI: https://doi.org/10.1007/978-3-319-04810-9_9

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-04809-3

  • Online ISBN: 978-3-319-04810-9

  • eBook Packages: Computer ScienceComputer Science (R0)

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