Bimpikis, Kostas; Fearing, Douglas; Tahbaz-Salehi, Alireza - Graduate School of Business, Stanford University - 2014
This paper studies the endogenous formation of supply chain networks when procurement is subject to disruption risk. We argue that the presence of non-convexities in the chain (e.g., due to non-convex production technologies or financial constraints) may create a wedge in the sourcing incentives...