Vertical Integration Versus Outsourcing in Industry Equilibrium

Preprint OPEN
Bin Wang;
(2006)
  • Subject: Outsourcing, Vertical Integration, Customization, Search Cost
    • jel: jel:F23 | jel:J21

We study the determinants of the extent of in-house vertical integration and of outsourcing in foreign countries. Potential suppliers must make a relationship-specific investment in order to serve each prospective customer. Such investments are governed by imperfect con... View more
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