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http://hdl.handle.net/10419/23533
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| Title: | | Strategic Outsourcing Revisited  |
| Authors: | | Buehler, Stefan Haucap, Justus |
| Issue Date: | | 2003 |
| Series/Report no.: | | Diskussionspapier / Helmut-Schmidt-Universität Hamburg, Fächergruppe Volkswirtschaftslehre 15 |
| Abstract: | | 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. |
| JEL: | | D43 L24 L23 L22 |
| Persistent Identifier of the first edition: | | urn:nbn:de:gbv:705-opus-1486 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Diskussionspapiere, Fächergruppe VWL, Helmut-Schmidt-Universität
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