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Complexity, Flexibility, and the Make-or-Buy Decision

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Steven Tadelis

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File URL: http://hdl.handle.net/10.1257/000282802320191750
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File URL: http://www.aeaweb.org/articles/article_detail.php?journal=AER&volume=92&issue=2&article=81&issue_date=May2002
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Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 92 (2002)
Issue (Month): 2 (May)
Pages: 433-437
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Handle: RePEc:aea:aecrev:v:92:y:2002:i:2:p:433-437

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Klein, Benjamin & Crawford, Robert G & Alchian, Armen A, 1978. "Vertical Integration, Appropriable Rents, and the Competitive Contracting Process," Journal of Law & Economics, University of Chicago Press, vol. 21(2), pages 297-326, October.
  2. Milgrom, Paul & Shannon, Chris, 1994. "Monotone Comparative Statics," Econometrica, Econometric Society, vol. 62(1), pages 157-80, January. [Downloadable!] (restricted)
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  3. Michael D. Whinston, 2001. "Assessing the Property Rights and Transaction-Cost Theories of Firm Scope," American Economic Review, American Economic Association, vol. 91(2), pages 184-188, May. [Downloadable!] (restricted)
  4. Hart, Oliver & Moore, John, 1990. "Property Rights and the Nature of the Firm," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1119-58, December. [Downloadable!] (restricted)
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  5. Barzel, Yoram, 1982. "Measurement Cost and the Organization of Markets," Journal of Law & Economics, University of Chicago Press, vol. 25(1), pages 27-48, April.
  6. Bajari, Patrick & Tadelis, Steven, 2001. "Incentives versus Transaction Costs: A Theory of Procurement Contracts," RAND Journal of Economics, The RAND Corporation, vol. 32(3), pages 387-407, Autumn.
    Other versions:
  7. Grossman, Sanford J & Hart, Oliver D, 1986. "The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 691-719, August. [Downloadable!] (restricted)
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  8. Holmstrom, Bengt & Roberts, John, 1998. "The Boundaries of the Firm Revisited," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 73-94, Fall. [Downloadable!] (restricted)
  9. Holmstrom, Bengt & Milgrom, Paul, 1991. "Multitask Principal-Agent Analyses: Incentive Contracts, Asset Ownership, and Job Design," Journal of Law, Economics and Organization, Oxford University Press, vol. 7(0), pages 24-52, Special I.
  10. Wernerfelt, Birger, 1997. "On the Nature and Scope of the Firm: An Adjustment-Cost Theory," Journal of Business, University of Chicago Press, vol. 70(4), pages 489-514, October. [Downloadable!] (restricted)
  11. Masten, Scott E, 1984. "The Organization of Production: Evidence from the Aerospace Industry," Journal of Law & Economics, University of Chicago Press, vol. 27(2), pages 403-17, October.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. R. Cellini & L. Lambertini, 2007. "The make-or-buy choice in a mixed oligopoly: a theoretical investigation," Working Papers 618, Dipartimento Scienze Economiche, Universita' di Bologna. [Downloadable!]
    Other versions:
  2. Oliver E. Williamson, 2005. "The Economics of Governance," American Economic Review, American Economic Association, vol. 95(2), pages 1-18, May. [Downloadable!]
  3. Andersson, Fredrik, 2009. "A Trickle-Down Theory of Incentives with Applications to Privatization and Outsourcing," Working Paper Series 784, Research Institute of Industrial Economics. [Downloadable!]
    Other versions:
  4. Wernerfelt, Birger, 2004. "Robust Incentive Contracts," Working papers 4448-03, Massachusetts Institute of Technology (MIT), Sloan School of Management. [Downloadable!]
  5. Arnaud Costinot & Lindsay Oldenski & James E. Rauch, 2009. "Adaptation and the Boundary of Multinational Firms," NBER Working Papers 14668, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  6. Pierre Azoulay, 2004. "Capturing Knowledge within and across Firm Boundaries: Evidence from Clinical Development," American Economic Review, American Economic Association, vol. 94(5), pages 1591-1612, December. [Downloadable!]
  7. Pierre Azoulay, 2003. "Acquiring Knowledge Within and Across Firm Boundaries: Evidence from Clinical Development," NBER Working Papers 10083, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Yukako Ono & Victor Stango, 2005. "Outsourcing, firm size, and product complexity: evidence from credit unions," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q I, pages 2-11. [Downloadable!]
  9. L. Lambertini, 2009. "Make vs Buy in a Monopoly with Demand or Cost Uncertainty," Working Papers 671, Dipartimento Scienze Economiche, Universita' di Bologna. [Downloadable!]
  10. Arnoud W.A. Boot & Anjan V. Thakor, 2003. "The Economic Value of Flexibility when there is Disagreement," Tinbergen Institute Discussion Papers 03-002/2, Tinbergen Institute. [Downloadable!]
    Other versions:
  11. Wernerfelt, Birger, 2003. "Governance of Adjustments," Working papers 4412-03, Massachusetts Institute of Technology (MIT), Sloan School of Management. [Downloadable!]
  12. Michael A. Kouparitsas, 2005. "Is there evidence of the new economy in U.S. GDP data?," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q I, pages 12-29. [Downloadable!]
  13. Jonathan Levin & Steven Tadelis, 2007. "Contracting for Government Services: Theory and Evidence from U.S. Cities," NBER Working Papers 13350, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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