Offshore Outsourcing Induced by Domestic Providers

Preprint OPEN
Yutian Chen; Pradeep Dubey; Debapriya Sen;
(2005)
  • Subject: Offshore outsourcing, Cournot duopoly, Stackelberg duopoly
    • jel: jel:D41 | jel:L11 | jel:L13

We show that offshore outsourcing can occur even when there are no economies of scale or cost advantages for the foreign firms. What drives the phenomenon is that domestic firms, by accepting orders for intermediate goods, incur the disadvantage of becoming Stackelberg ... View more
  • References (4)

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    Spiegel, Y., 1993. \Horizontal Subcontracting." The RAND Journal of Economics, 24, 570-590.

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