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multiple complementary inputs and the entry of a supplier into the final good market gives rise to mutual outsourcing of inputs … between the encroaching supplier and the incumbent. We show that, post encroachment, mutual outsourcing between the competing … mutual outsourcing. Our analysis yields novel managerial, empirical and policy implications. …
Persistent link: https://www.econbiz.de/10014377493
both crucial for the emergence of outsourcing. The supplier purposefully avoids industry pro.t maximization to enlarge its …
Persistent link: https://www.econbiz.de/10014377619
This paper analyzes a sequential game where firms decide about outsourcing the production of a non-specific input good … Tirole (1984) to characterize the different equilibria. We find that outsourcing generally softens competition in the final … product market. If firms anticipate the impact of their outsourcing decisions on input prices, there may be equilibria where …
Persistent link: https://www.econbiz.de/10010315541
This paper analyzes a sequential game where firms decide about outsourcing the production of a non-specific input good … Tirole (1984) to characterize the different equilibria. We find that outsourcing generally softens competition in the final … product market. If firms anticipate the impact of their outsourcing decisions on input prices, there may be equilibria where …
Persistent link: https://www.econbiz.de/10010263403
This paper shows the strategic aspects of international outsourcing in a duopolistic market. Due to different costs of … integrated production and outsourcing, the choice of a firm influences the strategy of the competitor via the output price … the three market constellations, both firms produce integrated, both use outsourcing and the firms operate with different …
Persistent link: https://www.econbiz.de/10010303910
The seminal paper by Salant, Switzer and Reynolds (1983) showed that merger in a standard Cournot framework with linear demand and linear costs is not profitable unless a large majority of the firms are involved in the merger. However, many strategic aspects matter for firm competition such as...
Persistent link: https://www.econbiz.de/10010261187
In this paper, I compare two-part tariff competition to linear pricing in a vertically differentiated duopoly …
Persistent link: https://www.econbiz.de/10010263184
behaviour of the cooperative and it has therefore important influence on the outcomes: In a mixed duopoly with a cooperative … patronizing their members the results are more competitive than in a pure duopoly. …
Persistent link: https://www.econbiz.de/10010263001
This paper contributes to Hübler (2008) who analyses a partial equilibrium model of outsourcing with Cournot … manufactured by a Western (outsourcing) or Eastern European supplier (offshore outsourcing). The paper asks the question how …
Persistent link: https://www.econbiz.de/10010265851
This paper shows the strategic aspects of international outsourcing in an oligopolistic market, if outsourcing is … attractive because of fixed cost savings. We show that outsourcing decisions are strategic substitutes. Furthermore, we … integrated production and thus leads to more outsourcing. Additionally, we analyse how domestic costs and taxation affect the …
Persistent link: https://www.econbiz.de/10010303908