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We study the determinants of the extent of outsourcing and of direct foreign investment in an industry in which …
Persistent link: https://www.econbiz.de/10011150134
likelihood of outsourcing is higher in the Antràs model, vertical FDI is a possibility when the human capital gap between the … model, international outsourcing is also possible, especially when the human capital gap between the home and the host …
Persistent link: https://www.econbiz.de/10011124042
We study the determinants of the location of sub-contracted activity in a general equilibrium model of outsourcing and … trade. We model outsourcing as an activity that requires search for a partner and relationship-specific investments that are … governed by incomplete contracts. The extent of international outsourcing depends inter alia on the thickness of the domestic …
Persistent link: https://www.econbiz.de/10005435961
We study the determinants of the extent of outsourcing and of direct foreign investment in an industry in which …
Persistent link: https://www.econbiz.de/10005435963
Unbundling of vertically integrated utilities has become an integral element in the regulation of network industries and has been implemented in many jurisdictions. The idea of separating the network, as the natural monopoly, from downstream retailing, which may be exposed to competition, is...
Persistent link: https://www.econbiz.de/10011933949
This paper examines vertical integration incentives in the presence of a cost-reducing technology. Combining the technology adoption and vertical merger literatures in a simple duopoly model, I show that asymmetric integration can occur even in a purely symmetric set-up, without synergies or...
Persistent link: https://www.econbiz.de/10012890074
Vertical separation of generation from electricity retailing has often been required as a condition of electricity market liberalisation. A well-developed and liquid contracts market is similarly suggested as necessary to manage the resulting wholesale market risks, which risks are further...
Persistent link: https://www.econbiz.de/10012890370
We study the implications of different contractual forms in a market with an incumbent upstream monopolist and free downstream entry. We show that traditional conclusions regarding the desirability of linear contracts radically change when entry in the downstream market is endogenous rather than...
Persistent link: https://www.econbiz.de/10012824081
Building on dynamic collusion theories, we predict that firms with less concentrated upstream or downstream industries have lower systematic risk because their supply chain partners tend to compete more aggressively during recessions, absorbing more of the adverse effect of aggregate shocks....
Persistent link: https://www.econbiz.de/10014255362
Hypermarkets are large retail suppliers of general merchandise or grocery items that also sell gasoline, often at very low margins. Using panel data for 1998-2002, this paper estimates the impact of hypermarkets on average state-level retail gasoline prices. The empirical results suggest a...
Persistent link: https://www.econbiz.de/10008545948