Du, Julan; Lu, Yi; Tao, Zhigang - In: Journal of International Economics 77 (2009) 2, pp. 215-222
In organizing production, many firms conduct bi-sourcing, i.e., acquiring the same set of inputs both by buying from external suppliers (outsourcing) and carrying out in-house production (insourcing). We show that, by adopting the bi-sourcing strategy, firms can use the payoff from one supplier...