Bühler, Stefan (contributor); Haucap, Justus (contributor) - 2003 - [Elektronische Ressource]
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 …
