Mukherjee, Arijit; Tsai, Yingyi - In: International Review of Economics & Finance 25 (2013) C, pp. 108-112
This paper studies the rationale for multiple sourcing. In a simple model of outsourcing that embodies technology transfer and the threat of competition from the supplier(s) due to imitation, we show that multiple sourcing helps to deter entry by the suppliers into the final goods market and...