Figure 5
The horizontal for both graphs is labeled “rho” and ranges from 0 to 0.2 in increments of 0.05 units. (a): Service price under decentralized decision: The vertical axis is labeled “P superscript D subscript S” and ranges from 12.86 to 13 in increments of 0.02 units. The graph shows a single, dashed blue line that forms a gentle, inverted U-shape. The line starts at a price of approximately 12.99, rises slightly to a peak of about 12.992 at a rho value just below 0.05, and then steadily decreases to a value of approximately 12.88 at rho equals 0.2. (b): Service price under centralized decision: The vertical axis is labeled “P superscript C subscript S” and ranges from 28.16 to 28.28 in increments of 0.02 units. The graph displays a single, solid red line that also forms a very gentle, inverted U-shape. This curve starts at a price of approximately 28.22, rises to a peak of about 28.27 at a ρ value of approximately 0.08, and then declines to a value of about 28.17 at rho equals 0.2.Impact of cost-saving factor on service price. Source(s): Authors’ own creation