the presence of search friction and incomplete outsourcing contracts, we show that the ex-post bargaining power of … a tension between the static and dynamic effects of outsourcing. The reason is that firms make their organizational … choices weighting the higher searching and contracting costs of outsourcing against the higher entry and foregone …

We study the decision of firms between vertical integration and outsourcing in a dynamic setting with product … innovation. In so doing, we model an industry in which R&D is performed by independent research labs and outsourcing production … requires complementary upstream and downstream inventions. In the presence of search friction and incomplete outsourcing …