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Why Do Firms Engage in Multi-Sourcing?


Arijit Mukherjee


University of Nottingham - School of Economics

Yingyi Tsai


National University of Kaohsiung

Justin Yifu Lin


affiliation not provided to SSRN
November 23, 2008

University of Nottingham, GEP Research Paper 2008/43

Abstract:     
We provide an explanation for multi-sourcing, which is often found in the real world and refers to the situation where a final goods producer acquires homogenous components from different suppliers. In the presence of imitation under outsourcing, multi-sourcing helps to deter entry by the suppliers into the final goods market and enhances profitability of the outsourcing firm.

Number of Pages in PDF File: 14

Keywords: entry, imitation, multi-sourcing

JEL Classification: F12, F23, L13, L24

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Date posted: July 25, 2009  

Suggested Citation

Mukherjee, Arijit, Tsai, Yingyi and Yifu Lin, Justin, Why Do Firms Engage in Multi-Sourcing? (November 23, 2008). University of Nottingham, GEP Research Paper 2008/43. Available at SSRN: http://ssrn.com/abstract=1438057 or http://dx.doi.org/10.2139/ssrn.1438057

Contact Information

Arijit Mukherjee (Contact Author)
University of Nottingham - School of Economics ( email )
University Park
Nottingham, NG7 2RD
United Kingdom
+44 115 9514733 (Phone)
+44 115 9514159 (Fax)
Yingyi Tsai
National University of Kaohsiung ( email )
Department of Applied Economics
700 Kaohsiung University Rd
Kaohsiung, 811
Taiwan
+886 7 5919189 (Phone)
+886 7 2169365 (Fax)
Justin Yifu Lin
affiliation not provided to SSRN ( email )
Feedback to SSRN (Beta)


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