Justin Y. Lin (China Center for Economic Research) Yingyi Tsai () (China Center for Economic Research) Ching-Tang Wu (China Center for Economic Research)
Additional information is available for the following
registered author(s):
This paper provides an explanation for outsourcing based on uncertainty. We study an optimal capital investment model both with and without the possibility to outsource under uncertainty. We show, in the presence of uncertainty, that outsourcing is Pareto-improving and that a brand-producing monopolistic reduces its fixed-asset investment if outsourcing is possible. We also show that the cost of undertaking outsourcing can have a significant impact on the monopolist's choices of optimal capital investment and outsourcing quantity.
Download Info
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.
Publisher Info
Paper provided by East Asian Bureau of Economic Research in its series Microeconomics Working Papers with number
450.
Length: 22 pages Date of creation: Nov 2003 Date of revision: Handle: RePEc:eab:microe:450
Contact details of provider: Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200 Web page: http://www.eaber.org More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Sam Engele).
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.: