Arbeitspapier
Strategic outsourcing revisited
This paper analyzes a sequential game where firms decide about outsourcing the production of a non-specific input good to an imperfectly competitive input market. We apply the taxonomy of business strategies introduced by Fudenberg and 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 firms outsource so as to collude or to raise rivals' costs. We illustrate our analysis using a linear Cournot model.
- Sprache
-
Englisch
- Erschienen in
-
Series: Working Paper ; No. 0305
- Klassifikation
-
Wirtschaft
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Firm Organization and Market Structure
Organization of Production
Contracting Out; Joint Ventures; Technology Licensing
- Thema
-
Outsourcing
Duopol
Unvollkommener Wettbewerb
Spieltheorie
Theorie
Extensives Spiel
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Buehler, Stefan
Haucap, Justus
- Ereignis
-
Veröffentlichung
- (wer)
-
University of Zurich, Socioeconomic Institute
- (wo)
-
Zurich
- (wann)
-
2003
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:41 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Buehler, Stefan
- Haucap, Justus
- University of Zurich, Socioeconomic Institute
Entstanden
- 2003