multiple complementary inputs and the entry of a supplier into the final good market gives rise to mutual outsourcing of inputs … between the encroaching supplier and the incumbent. We show that, post encroachment, mutual outsourcing between the competing … mutual outsourcing. Our analysis yields novel managerial, empirical and policy implications. …

both crucial for the emergence of outsourcing. The supplier purposefully avoids industry pro.t maximization to enlarge its …

This paper analyzes a sequential game where firms decide about outsourcing the production of a non-specific input good … Tirole (1984) to characterize the different equilibria. We find that outsourcing generally softens competition in the final … product market. If firms anticipate the impact of their outsourcing decisions on input prices, there may be equilibria where …

This paper analyzes a sequential game where firms decide about outsourcing the production of a non-specific input good … Tirole (1984) to characterize the different equilibria. We find that outsourcing generally softens competition in the final … product market. If firms anticipate the impact of their outsourcing decisions on input prices, there may be equilibria where …

This paper shows the strategic aspects of international outsourcing in a duopolistic market. Due to different costs of … integrated production and outsourcing, the choice of a firm influences the strategy of the competitor via the output price …. Therefore, the resulting market constellation depends on the fixed costs and the difference between marginal costs. We show that …

demand and linear costs is not profitable unless a large majority of the firms are involved in the merger. However, many …

behaviour of the cooperative and it has therefore important influence on the outcomes: In a mixed duopoly with a cooperative … patronizing their members the results are more competitive than in a pure duopoly. …

In this paper, I compare two-part tariff competition to linear pricing in a vertically differentiated duopoly …

This paper discusses a simultaneous market entry game between two firms with different fixed costs. This case is a …

integrated production and thus leads to more outsourcing. Additionally, we analyse how domestic costs and taxation affect the … equilibrium level of outsourcing and employment. Here, we find that lower domestic costs decrease the proportion of outsourcing … decreases outsourcing. In case of a reversed outsourcing motivation, where outsourcing is associated with lower marginal costs …