A theory for industrial make-buy decisions?

Trade-offs in make-buy decisions

While the previous literature uses transaction cost economics and the resource-based view to theoretically derive the benefits of outsourcing, it has so far overlooked how these theoretical underpinnings must be used to assess trade-offs involved in make-buy decisions as well. This study investigates trade-offs in make-buy decisions for the buying firm. It takes an operations strategy perspecti...

Are input prices irrelevant for make-or-buy decisions?

The 1996 Telecommunications Act requires incumbent providers to lease network inputs to rivals at cost-based prices in order to jump-start competition. Sappington (Sappington, D. (2005). American Economic Review, 95(5), 1631–1638) uses the Hotelling model to show that input prices are irrelevant for an entrant’s decision to make or buy an input required for downstream production. We show that t...

A Transaction Cost Approach to Make-or-Buy Decisions

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Learning to Make Rent-to-Buy Decisions with Systems Applications

In the single rent-to-buy decision problem, without a priori knowledge of the amount of time a resource will be used we need to decide when to buy the resource, given that we can rent the resource for $1 per unit time or buy it once and for all for $c. In this paper we study algorithms that make a sequence of single rent-to-buy decisions, using the assumption that the resource use times are ind...

Make-or-Buy Decisions in Patent Related Services