An Application of Bayesian Nash Equilibrium Model to Quality Surveillance of Service Outsourcing

As service outsourcing is growing, there is a focus on the formation and development of service supply chain . One of the key elements of service supply chain is concerned with the service quality surveillance.In the paper a service supply chain structure including a service supplier and an service integrator is proposed and a Bayesian Nash equilibrium model under asymmetric information is established based on a basic model of quality surveillance in service supply chain with symmetric information and an equilibrium result obtained, then the impact on quality surveillance is considered with a factor that the service integrator would be punished and the result of the Bayesian Nash equilibrium is realized. Simulation result shows that the quality completion level of service supplier rises up and the quality surveillance level of integrator brings down as above factor introduced. Therefore, in practice, the level of service can be improved effectively and the whole quality of services supply chain would be enhanced through strengthening the punishment of integrator.