Showing 1 - 10 of 2,486
We study ex post outsourcing of production in an imperfectly discriminating contest, interpreted here as a research … tournament or a procurement contest for being awarded some production contract. We find that the possibility of outsourcing …, outsourcing reduces the procurement costs of inducing a given level of effort if the contest organizer can collect entry fees …
Persistent link: https://www.econbiz.de/10010261411
The costs of vertical integration are analyzed within a game-theoretic signaling model. It is shown that a company when being vertically integrated with a supplier may well decide to buy certain components from this supplier even at a lower quality than that offered by external sources. When the...
Persistent link: https://www.econbiz.de/10010261581
One issue the literature neglects is how outsourcing stimulates trade (imports, exports and foreign direct investment …
Persistent link: https://www.econbiz.de/10010262075
This paper offers a rationale for limiting the delegation of (real) authority, which neither relies on insurance arguments nor depends on ownership structure. We analyse a repeated hidden action model in which the actions of a risk neutral agent determine his future outside option. Consequently,...
Persistent link: https://www.econbiz.de/10010262786
We analyze the following questions associated with outsourcing and profit sharing under imperfect labour markets. How … does strategic outsourcing influence wage formation, profit sharing and employee effort when firms commit to optimal profit … sharing before wage formation or decide for profit sharing after wage formation. What is the relationship between outsourcing …
Persistent link: https://www.econbiz.de/10010264267
We analyze a model that focuses on the export/outsource decision. Outsourcing has the advantage of providing better … technology embodied in the local capital. The decision of whether to offer an outsourcing contract weighs these two effects … against each other. The host country accepts the outsourcing contract if the higher price they pay for the outsourced good is …
Persistent link: https://www.econbiz.de/10010264307
This paper addresses outsourcing in the two-type optimal income tax model. If the government is able to control … outsourcing via a direct tax instrument, outsourcing will not affect the marginal income tax structure. In the absence of a direct … tax instrument, and under the plausible assumption that higher outsourcing increases the wage differential, the government …
Persistent link: https://www.econbiz.de/10010264337
This paper contributes to Hübler (2008) who analyses a partial equilibrium model of outsourcing with Cournot … manufactured by a Western (outsourcing) or Eastern European supplier (offshore outsourcing). The paper asks the question how …
Persistent link: https://www.econbiz.de/10010265851
This paper analyzes the issues of immigration and outsourcing in a general-equilibrium model of international factor … mobility. In our model, legal immigration is controlled through a quota, while outsourcing is determined both by the firms (in … response to market conditions) and through policy-imposed barriers. A loosening of the immigration quota reduces outsourcing …
Persistent link: https://www.econbiz.de/10010267646
With outsourcing comes a perceived tension between the competitive pressures faced by domestic firms and the effect … that outsourcing has on domestic workers. To address this tension, we present a general-equilibrium model with an … oligopolistic export sector and a competitive import-competing sector. When there is a minimum wage, an outsourcing tax might be …
Persistent link: https://www.econbiz.de/10010267667