Yutian, Chen; Debapriya, Sen - In: The B.E. Journal of Theoretical Economics 12 (2012) 1, pp. 1-33
While the significance of economies of scale in outsourcing has been well-documented, the consequences of outsourcing on firms' R&D efforts, when outsourcing is driven by scale economies, remains unexplored. We investigate a simple model where downstream competitors outsource to a common...