Why do Firms Engage in Multi-sourcing?
AbstractWe provide an explanation for multi-sourcing, which is often found in the real world and refers to the situation where a final goods producer acquires homogenous components from different suppliers. In the presence of imitation under outsourcing, multi-sourcing helps to deter entry by the suppliers into the final goods market and enhances profitability of the outsourcing firm.
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Bibliographic InfoPaper provided by University of Nottingham, GEP in its series Discussion Papers with number 08/43.
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Entry; Imitation; Multi-sourcing;
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