both crucial for the emergence of outsourcing. The supplier purposefully avoids industry pro.t maximization to enlarge its …

-agent hires the sub-agent (outsourcing). We show that insourcing is always optimal when the principal can perfectly process the … prime-agent's report. When the principal's information process is limited, however, outsourcing can be the prevailing mode … no possibility of collusion arises with outsourcing. …

firm-specific input suppliers when the final goods producers undertake complete outsourcing or bi-sourcing. Under complete … outsourcing, the final goods producers locate closer as the distance between the input suppliers decreases, but the distance … the final goods producers, and creates effects which are opposite to those under complete outsourcing. Thus, our results …