Strategic Outsourcing under Economies of Scale

Chen, Yutian and Sen, Debapriya (2010): Strategic Outsourcing under Economies of Scale.

Abstract

Economies of scale in upstream production can lead both disintegrated downstream firms as well as its vertically integrated rival to outsource offshore for intermediate goods, even if offshore production has moderate cost disadvantage compared to in-house production of the vertically integrated firm.

• Item Type: MPRA Paper
• Language: English
• Keywords: Outsourcing, Economies of Scale
• Subjects: L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L11 - Production, Pricing, and Market Structure ; Size Distribution of Firms; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L13 - Oligopoly and Other Imperfect Markets; D - Microeconomics > D4 - Market Structure, Pricing, and Design > D43 - Oligopoly and Other Forms of Market Imperfection

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