Strategic Organizational Form Choice Game between Duopoly E-Business Firms with Asymmetric Location

摘要

This paper argues that E-Business Firms can be generally classified into vertical integration one and outsourcing one according to the organizational form choice of firm. This paper shows how key factors relating to market competition,including difference of marginal cost in different organizational form, difference of fLxed cost in different organizational form, product differentiation, absolute difference of private monopoly market, comparative difference of private monopoly market affect different Nash Equilibrium in strategic organizational choice game between duopoly firms when both firms are asymmetric located in Hotelling market setting.