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Fragmentation of production into more and more complex supply chains is a prominent feature of globalisation. It implies that transaction costs as part of total costs of ownership carry a large weight in procurement decisions. An analysis of the various types of transaction costs is also...
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We study the timing of new technology adoption in markets with input outsourcing, and thus with vertical relations. We … find that technology adoption can take place earlier when firms engage in input outsourcing than when they produce the …
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