Nash Game Theory Leasing Contract Model of New and Recondition Complex Equipment
Complex condition of equipment maintenance lead many companies today considers outsourcing maintenance activities either to original equipment (OEM) or third-party maintenance company (agent). Objective of this research is to simultaneously consider two maintenance policies from perspectives of equipment lessor and lessee. The lessor offers two choices of equipment: (i) new equipment and (ii) reconditioned equipment. Lessee is going to compare these two options to maximize total profit. Nash game theory is applied to derive decision from both perspectives.
KeywordsMaintenance Complex equipment Outsource Game theory
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