Why do Firms Engage in Multi-sourcing?

We provide an explanation for multi-sourcing, which is often found in the real world and refers to the situation where a final goods producer acquires homogenous components from different suppliers. In the presence of imitation under outsourcing, multi-sourcing helps to deter entry by the suppliers into the final goods market and enhances profitability of the outsourcing firm.

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Authors:	Lin, Justin Yifu ; Mukherjee, Arijit ; Tsai, Yingyi
Institutions:	Leverhulme Centre for Research on Globalisation and Economic Policy, School of Economics
Subject:	Entry \| Imitation \| Multi-sourcing

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Extent:	application/pdf
Series:	Discussion Papers.
Type of publication:	Book / Working Paper
Language:	English
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008461470