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Motivated by the recent backshoring trend, this paper studies a sourcing game where competing firms may choose between efficient sourcing (e.g., sourcing from overseas) and responsive sourcing (e.g., sourcing from home country). Efficient sourcing usually provides a cost advantage, while...
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Market competition may lead to mismatch between supply and demand. That is, overpricing maygive rise to underselling, and underpricing may yield stockout. Capacity sharing is a commonpractice to align excessive capacity with excessive demand. Yet the strategic interaction betweencompetition and...
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This paper studies an outsourcing problem where two service providers (suppliers) compete for the service contract from a client. The suppliers face uncertain cost for providing the service because they do not have perfect information about the client's type. The suppliers receive differential...
Persistent link: https://www.econbiz.de/10014043744
Driven by increasing costs in the traditionally-regarded low-cost manufacturing bases (e.g., China), many firms have started to outsource their production to the regions of even lower costs (e.g., Southeast Asia). However, a new environment may involve higher cost uncertainty and severer...
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