We analyze how the precision of a firm’s product safety testing affects its pricing strategies and the associated profit implications under strict product liability with a partial liability specification. We consider a signaling game where a firm with private product safety information chooses...

Two game models are developed based on production costs and scope economies to investigate the widely observed multi-client outsourcing (MCO) phenomenon. Analytical results demonstrate that outsourcers' high in-house production costs and the advantage of scope economies motivate firms to...