Document Type
Working Paper
Publication Date
2-1-2010
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.
Recommended Citation
Chen, Yutian and Sen, Debapriya, "Strategic Outsourcing under Economies of Scale" (2010). Economics Publications and Research. Paper 36.
http://digitalcommons.ryerson.ca/economics/36
Comments
Also available for download here: http://mpra.ub.uni-muenchen.de/20763/