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Offshore outsourcing of administrative and technical services has become a mainstream business practice. Increasing … commoditization of business services and growing client experience with outsourcing have created a range of competitive service … delivery options for client firms. Yet, data from the Offshoring Research Network (ORN) suggests that, despite increasing …
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I study the interaction between optimal procurement and outsourcing of production in small industries. First, two … sellers decide about outsourcing. By outsourcing, a seller loses information about the costs of producing to his supplier … suppliers. The focal equilibrium might exhibit bilateral outsourcing although outsourcing is modeled to have no direct positive …
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This paper offers a rationale for limiting the delegation of (real) authority, which neither relies on insurance arguments nor depends on ownership structure. We analyse a repeated hidden action model in which the actions of a risk neutral agent determine his future outside option. Consequently,...
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