Title: Outsourcing

Essay Details

Subject: Business
Author: Virginia C
Date: January 11, 2016
Level:
Grade: A
Length: 1 / 260
No of views: 0
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Essay text:

This means that a firm will invest in that asset only up to the point where marginal cost of investment equals the fraction of the marginal return on investment the firm can expect to recover. Thus, the firm underinvests relative to the globally optimal level. The hope is that a pair of firms in an IT outsourcing relation can globally maximize profit by properly assigning property rights...

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Some references for the research are: (Grossman and Hart 1986; Hart and Moore 1988; Hart and Moore 1990; Bakos and Brynjolfsson 1993; Bakos and Brynjolfsson 1993; Aghion and Tirole 1994; Brynjolfsson 1994; Bakos and Nault 1997; Lerner and Merges 1998; Hart and Moore 1999; Maskin and Tirole 1999; Tirole 1999) In addition to the central question, a number of sub-questions present themselves...

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