標題: The Choice of Prices versus Quantities under Outsourcing
作者: Chang, Ray-Yun
Hu, Jin-Li
Lin, Yan-Shu
經營管理研究所
Institute of Business and Management
關鍵字: competition strategy;outsourcing;intermediate market
公開日期: 1-Jul-2018
摘要: This paper establishes a duopoly model with product differentiation and outsourcing in order to analyze the equilibrium competition strategies (choice of prices versus quantities) when the outsourcer outsources its intermediate good to a final product competitor. We show that: (1) both firms choose the quantity strategy when the cost efficiency of the subcontractor is low; (2) the choice of competition strategy is the price strategy for the subcontractor and the quantity strategy for the outsourcer when the cost efficiency of the subcontractor is moderate; (3) both firms choose the price strategy when the cost efficiency of the subcontractor is sufficiently high.
URI: http://dx.doi.org/10.1515/bejte-2016-0195
http://hdl.handle.net/11536/147914
ISSN: 1935-1704
DOI: 10.1515/bejte-2016-0195
期刊: B E JOURNAL OF THEORETICAL ECONOMICS
Volume: 18
Appears in Collections:Articles