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政大典藏 > College of Commerce > Department of International Business > Periodical Articles > Item 140.119/140176

Please use this identifier to cite or link to this item: https://nccur.lib.nccu.edu.tw/handle/140.119/140176

Title:	To Make or to Buy from a Common Supplier? Strategic Considerations and Welfare Consequences
Authors:	溫偉任;李文傑 Wen, Wei‐Jen;Lee, Wen-Chieh Lo, Chung-Yen
Contributors:	國貿系
Keywords:	make‐or‐buy decision;strategic outsourcing;welfare
Date:	2023-03
Issue Date:	2022-05-30 16:01:31 (UTC+8)
Abstract:	Consider two downstream firms that each can either produce an input in-house or purchase it from an upstream supplier. We show that depending on the difference between the supplier`s and the downstream firms` in-house production costs, outsourcing by both firms could help them achieve a Pareto improvement or leave them trapped in a prisoner`s dilemma. Furthermore, we find that two downstream firms may play a chicken game in which each makes a sourcing decision different from its rival if the input supplier is not as efficient as in the previous cases. The welfare implications of various sourcing outcomes are explored.
Relation:	International Journal of Economic Theory, Vol.19, No.1, pp.39-61
Data Type:	article
DOI link:	https://doi.org/10.1111/ijet.12334
DOI:	10.1111/ijet.12334
Appears in Collections:	[Department of International Business] Periodical Articles [Department of Economics] Periodical Articles

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