Formal Criteria for the Classification of Service Based on the Value-creation Model

With the aim of providing a scientific methodology for studies of services, the value-creation model, which classifies service models in three classes on the basis of the relationships among service providers, was proposed in the 2000s. However, the model lacks formal criteria for classifying service models in scientific way. Therefore, in this study, we first consider the activity of service design as an activity of designing “service mechanism” in reference to mechanism design, which is an area in economics and game theory. Then, we develop formal criteria for the classification of the service mechanism based on the value-creation model.