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Vertical
technology transfer, bi-sourcing and welfare. |
Arijit Mukherjee |
Working paper |
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Arijit Mukherjee |
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Vertical technology transfer under
outsourcing allows a developed country firm to benefit from lower cost of production, the developed country firm also faces the threaf of the imitation under technology transfer. We show that: l Developed firms prefers
bi-sourcing under vertical technology. l Consumers are worse off under
vertical technology transfer. l World welfare may decrease. |