Coordination in Service Value Networks: A Mechanism Design Approach

The fundamental paradigm shift from traditional value chains to agile service value networks (SVN) implies new economic and organizational challenges. This work provides an auction-based coordination mechanism that enables the allocation and pricing of service compositions in SVNs. The mechanism is multidimensional incentive compatible and implements an ex-post service level enforcement. Further extensions of the mechanism are evaluated following analytical and numerical research methods.

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