| Title: | The Choice of Prices versus Quantities under Outsourcing |
| Authors: | Chang, RY (Chang, Ray-Yun)
Hu, JL (Hu, Jin-Li)
Lin, YS (Lin, Yan-Shu) |
| Contributors: | 經濟學系暨經濟學系碩博士班 |
| Keywords: | MIXED DUOPOLY
DIFFERENTIATED DUOPOLY
VS. QUANTITY
COMPETITION
BERTRAND
COURNOT
WELFARE
PROFITABILITY
UNCERTAINTY
STRATEGIES |
| Date: | 2018-07 |
| Issue Date: | 2019-01-17 13:33:52 (UTC+8) |
| Abstract: | 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. |
| Appears in Collections: | [Department of Economics & Graduate Institute of Economics ] journal articles
|
