This file is part of IDEAS , which uses RePEc data
[ Papers |
Articles |
Software |
Books |
Chapters |
Authors |
Institutions |
JEL Classification |
NEP reports |
Search |
New papers by email |
Author registration |
Rankings |
Volunteers |
FAQ |
Blog |
Help! ]
Outsourcing Induced by Strategic Competition Author info | Abstract | Publisher info | Download info | Related research | Statistics Yutian Chen (Dept. of Economics, SUNY-Stony Brook)
Pradeep Dubey (Dept. of Economics, SUNY-Stony Brook)
Debapriya Sen (Dept. of Economics, SUNY-Stony Brook)
Additional information is available for the following
registered author(s):
We show that intermediate goods can be sourced to firms on the "outside" (that do not compete in the final product market), even when there are no economies of scale or cost advantages for these firms. What drives the phenomenon is that "inside" firms, by accepting such orders, incur the disadvantage of becoming Stackelberg followers in the ensuing competition to sell the final product. Thus they have incentive to quote high provider prices to ward off future competitors, driving the latter to source outside.
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file . Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Paper provided by Cowles Foundation, Yale University in its series Cowles Foundation Discussion Papers with number
1589.
Download reference. The following formats are available: HTML ,
plain text ,
BibTeX ,
RIS (EndNote),
ReDIF
Length: 21 pages
Date of creation: Nov 2006Date of revision:
Handle: RePEc:cwl:cwldpp:1589Contact details of provider: Postal: Yale University, Box 208281, New Haven, CT 06520-8281 USA Phone: (203) 432-3702 Fax: (203) 432-6167 Web page: http://cowles.econ.yale.edu/ More information through EDIRC
Order Information: Postal: Cowles Foundation, Yale University, Box 208281, New Haven, CT 06520-8281 USA
For technical questions regarding this item, or to correct its listing, contact: (Glena Ames).
Keywords: Intermediate goods Outsourcing Cournot duopoly Stackelberg duopoly Other versions of this item:
Find related papers by JEL classification: D41 - Microeconomics - - Market Structure and Pricing - - - Perfect Competition L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
This paper has been announced in the following NEP Reports :
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.: Yossef Spiegel, 1993.
"Horizontal Subcontracting ,"
RAND Journal of Economics ,
The RAND Corporation, vol. 24(4), pages 570-590, Winter.
[Downloadable!] (restricted)
Vidal, Carlos J. & Goetschalckx, Marc, 1997.
"Strategic production-distribution models: A critical review with emphasis on global supply chain models ,"
European Journal of Operational Research ,
Elsevier, vol. 98(1), pages 1-18, April.
[Downloadable!] (restricted)
Pal, Debashis, 1996.
"Endogenous Stackelberg Equilibria with Identical Firms ,"
Games and Economic Behavior ,
Elsevier, vol. 12(1), pages 81-94, January.
[Downloadable!] (restricted)
Hamilton, Jonathan H. & Slutsky, Steven M., 1990.
"Endogenous timing in duopoly games: Stackelberg or cournot equilibria ,"
Games and Economic Behavior ,
Elsevier, vol. 2(1), pages 29-46, March.
[Downloadable!] (restricted)
Other versions: Chen, Yongmin & Ishikawa, Jota & Yu, Zhihao, 2004.
"Trade liberalization and strategic outsourcing ,"
Journal of International Economics ,
Elsevier, vol. 63(2), pages 419-436, July.
[Downloadable!] (restricted)
Other versions: Mailath George J., 1993.
"Endogenous Sequencing of Firm Decisions ,"
Journal of Economic Theory ,
Elsevier, vol. 59(1), pages 169-182, February.
[Downloadable!] (restricted)
Shy, Oz & Stenbacka, Rune, 2003.
"Strategic outsourcing ,"
Journal of Economic Behavior & Organization ,
Elsevier, vol. 50(2), pages 203-224, February.
[Downloadable!] (restricted)
Robson, Arthur J, 1990.
"Duopoly with Endogenous Strategic Timing: Stackelberg Regained ,"
International Economic Review ,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(2), pages 263-74, May.
[Downloadable!] (restricted)
Full
references
Access and
download statistics Did you know? RePEc also has a blog .
This page was last updated on 2008-8-18.
This information is provided to you by IDEAS at the Department of Economics , College of Liberal Arts and Sciences , University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics .