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 …

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

contracts is crucial for the emergence of outsourcing. The supplier purposefully avoids industry profit maximization to enlarge …

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 …

We analyze the outsourcing decision of a firm for a key input of a final good production to an independent input … gap it would produce the input in-house for itself and for its rivals. The outsourcing occurs in order to take advantage … for the input to be acquired from the monopoly input supplier. Though the firm gains from strategic outsourcing, consumers …

We construct a model to show that outsourcing of a crucial input can occur even though it can be produced in-house at a … differentiation is small or the technological gap between two input producing firms is small, strategic outsourcing will occur …. Technology transfer in the form of patent sale will act as a commitment that the firm will outsource. While the outsourcing firm …