Competition and Outsourcing with Scale Economies

Article OPEN
Gérard P. Cachon; Patrick T. Harker;
(2002)
  • Journal: Management Science, volume 48, issue 10 October, pages 1,314-1,333
  • Identifiers: doi: 10.1287/mnsc.48.10.1314.271
  • Subject: service operations, nash equilibrium, coproduction, economies of scale, ECQ, queuing

Scale economies are commonplace in operations, yet because of analytical challenges, relatively little is known about how firms should compete in their presence. This paper presents a model of competition between two firms that face scale economies; (i.e., each firm's c... View more
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