In this paper, we focus on outsourcing activities optimization problem in single period setting. In some situations, capacity planning or outsourcing is a one-time event and can be modeled as a single period problem. The aim of this research is to balance the trade-off between two echelons of a...

We study optimal contracts when R\&D is outsourced to another company. We find that, when a realistic assumption holds, the optimal contract always leads in equilibrium to the lowest acceptable chance of having a successful technical innovation, given announced compensations. This assumption is...