We model the production of complex goods in a large supply network. Each firmsources several essential inputs through relationships with other firms. Due to the risk of suchsupply relationships being idiosyncratically disrupted, firms multisource inputs and strategicallyinvest to make...

Crises like COVID-19 or the Japanese earthquake in 2011 exposed the fragility of corporate supply networks. The production of goods and services is a highly interdependent process and can be severely impacted by the default of critical suppliers or customers. While knowing the impact of...