Market structure and strategic bi-sourcing

Journal of Economic Behavior and Organization

Volumn 82, Issue 1, 2012, Pages 210-219

  Beladi, Hamid ^a   Mukherjee, Arijit ^b,c  

^a UNIVERSITY OF TEXAS AT SAN ANTONIO   (United States)

^b UNIVERSITY OF YORK   (United Kingdom)

^c CESifo ^*  (Germany)

Author keywords

Bi sourcing; Competition; In house input production

Indexed keywords

EID: 84857676036     PISSN: 01672681     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jebo.2012.01.004     Document Type: Article

References (41)

1. Antràs P. Incomplete contracts and the product cycle. The American Economic Review 2005, 95:1054-1073.
2. Baye M., Crocker K., Ju J. Licensing, franchising, and divestiture incentives in oligopoly. The American Economic Review 1996, 86:223-236.
3. Carey S., Frangos A. Facing cost pressures, U.S. airlines outsource crucial safety functions. Asian Wall Street Journal 2005, 1:24.
4. Cohen L., Young A. Multisourcing: Moving Beyond Outsourcing to Achieve Growth and Agility 2006, Harvard Business School Press, Boston, MA.
5. Choi S.C. Price competition in a channel structure with a common retailer. Marketing Science 1991, 10:271-296.
6. Choi J.P., Davidson C. Strategic second sourcing by multinationals. International Economic Review 2004, 45:579-600.
7. Corbet C.J., Karmarkar U.S. Competition and structure in serial supply chains with deterministic demand. Management Science 2001, 47:966-978.
8. Corchon L.C., Gonzales-Maestre M. On the competitive effects of licensing. Mathematical Social Sciences 2000, 39:71-79.
9. De Fontenay C.C., Gans J.S. A bargaining perspective on strategic outsourcing and supply competition. Strategic Management Journal 2008, 29:819-839.
10. Digitimes, 2007. Available at: (accessed on 10.05.08). http://www.digitimes.com/Tornado/V4/SearchEnd.asp.
11. Dixit A. The role of investment in entry deterrence. Economic Journal 1980, 90:95-106.
12. Du J., Lu Y., Tao Z. Why do firms conduct bi-sourcing?. Economics Letters 2006, 92:245-249.
13. Du J., Lu Y., Tao Z. Bi-sourcing in a global economy. Journal of International Economics 2009, 77:215-222.
14. Economides N. The incentive for non-price discrimination by an input monopolist. International Journal of Industrial Organization 1998, 16:271-284.
15. Emons W. Good times, bad times, and vertical upstream integration. International Journal of Industrial Organization 1996, 14:465-484.
16. Farrell J., Gallini N. Second-sourcing as commitment: monopoly incentives to attract competition. The Quarterly Journal of Economics 1988, 103:673-694.
17. Gerstner E., Hess H. Pull promotions and channel coordination. Marketing Science 1995, 14:43-60.
18. Greenhut M.L., Ohta H. Related market conditions and interindustrial mergers. The American Economic Review 1976, 66:267-277.
19. Grossman G.M., Helpman E. Outsourcing versus FDI in industry equilibrium. Journal of the European Economic Association 2003, 1:317-327.
20. Grossman S., Hart O. Costs and benefits of ownership: a theory of vertical and lateral integration. Journal of Political Economy 1986, 94:691-719.
21. Hart, O., Tirole, J., 1990. Vertical integration and market foreclosure, Brookings Papers on Economic Activity, 205-76 and 285-286.
22. He D., Nickerson J. Why do firms make and buy? Efficiency, appropriability, and competition in the trucking industry. Strategic Organization 2006, 4:43-69.
23. Horn H., Wolinsky A. Worker substitutability and patterns of unionisation. Economic Journal 1988, 98:484-497.
24. Kierzkowski H. Outsourcing and fragmentation: blessing or threat?. International Review of Economics and Finance 2005, 14:233-235.
25. Kogut B., Kulatilaka N. Operating flexibility, global manufacturing, and the option value of a multinational network. Management Science 1994, 40:123-139.
26. Morton F.S., Zettelmeyer F. The strategic positioning of store brands in retailer-manufacturer negotiations. Review of Industrial Organization 2004, 24:161-194.
27. Mukherjee A. Unionised labour market and strategic production decision of a multinational. Economic Journal 2008, 118:1621-1639.
28. Naylor R. Industry profits and competition under bilateral oligopoly. Economics Letters 2002, 77:169-175.
29. Nokia Annual Report, 2003. http://europe.nokia.com/aboutnokia/downloads/Nokia_20_F_2003.pdf.
30. Puranam, P., Gulati, R., Bhattacharya, S., 2006. How Much to Make and How Much to Buy: Explaining Plural Sourcing Strategies, Mimeo, London Business School.
31. Rob R., Vettas N. Foreign direct investment and exports with growing demand. Review of Economic Studies 2003, 69:1-20.
32. Sanyal K.K., Jones R.W. The theory of trade in middle products. The American Economic Review 1982, 72:16-31.
33. Schwartz M., Thompson E.A. Divisionalization and entry deterrence. Quarterly Journal of Economics 1986, 101:307-322.
34. Shepard A. Licensing to enhance the demand for a new product. Rand Journal of Economics 1987, 18:360-368.
35. Shy O., Stenbacka R. Strategic outsourcing. Journal of Economic Behavior and Organization 2003, 50:203-224.
36. Spencer B.J. International outsourcing and incomplete contracts. Canadian Journal of Economics 2005, 38:1107-1135.
37. Stenbacka, R., Tombak, M., 2010. 'Make and buy: balancing bargaining power', Discussion Paper No. 300, HECER - Helsinki Centre of Economic Research, University of Helsinki, Finland.
38. Tyagi R.K. On the effects of downstream entry. Management Science 1999, 45:59-73.
39. Villas-Boas J.M. Product line design for a distribution channel. Marketing Science 1998, 17:156-169.
40. Yoshida Y. Third-degree price discrimination in input market. The American Economic Review 2000, 90:240-246.
41. Yuan L. Product differentiation, strategic licensing, and persistence of monopoly. Journal of Economics and Management Strategy 1999, 8:581-602.