This paper studies the mechanism of the division of the gains in high-tech global supply chains. Motivated by the empirical observation which is widely discussed in international business literature so called “smile curve”, this paper demonstrates in a theoretical model that whether or not...

We study the optimal organizational structure of a firm in a sequential supply chain when investments are relationship specific and contracts are incomplete. The market structure for the final product is monopolistic competition. Production follows a preordered sequence and exhibits high...