This paper focuses on; the interactions between customer and provider in a Business-to-Consumer scenario. An earlier idea of segmenting PSS into episodes of customer/provider interaction is expanded and an approach for applying selected methods of new institutional economics to the evaluation of design variants is presented.
Transaction cost and property rights distribution are proposed as evaluation criteria and suggestions for reducing the consequences of asymmetric information are given.
As an example; various alternatives for a PSS ‚Äúlaundry / cleaning clothes‚ÄĚ are considered and the results are presented.
Keywords: PSS design; new institutional economy; variant design