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 … the three market constellations, both firms produce integrated, both use outsourcing and the firms operate with different …

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

This paper shows the strategic aspects of international outsourcing in an oligopolistic market, if outsourcing is … attractive because of fixed cost savings. We show that outsourcing decisions are strategic substitutes. Furthermore, we … integrated production and thus leads to more outsourcing. Additionally, we analyse how domestic costs and taxation affect the …

produced in Finland, and 58-59%, if the production is outsourced. In conclusion, the results show that outsourcing offshore is …, since the outsourcing partners create only 2% of the total value added. …

outsourcing decision, where only tangible property rights are considered. We argue therefore that the risk of imitation is a …

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. …