Make and Buy: Balancing Bargaining Power

Volume: 81, Issue: 2, Pages: 391 - 402
Published: Feb 1, 2012
Abstract
null null We analyze the optimal procurement of labor, which can be supplied either internally, based on wage negotiations, or acquired at terms negotiated with an external subcontractor. The novel feature of our model is that the subcontractor's bargaining power is a function of the proportion of output outsourced. We demonstrate analytically how multiple sourcing emerges as an organizational mechanism to balance cost advantages associated with...
Paper Details
Title
Make and Buy: Balancing Bargaining Power
Published Date
Feb 1, 2012
Volume
81
Issue
2
Pages
391 - 402
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