Kabiraj, Tarun; Sinha, Uday Bhanu - 2014
We construct a model to show that outsourcing of a crucial input can occur even though it can be produced in-house at a … differentiation is small or the technological gap between two input producing firms is small, strategic outsourcing will occur …. Technology transfer in the form of patent sale will act as a commitment that the firm will outsource. While the outsourcing firm …