Sourcing Innovation and Production

Sourcing Innovation: On Feedback in Contests

It is notoriously difficult to provide outside parties with adequate incentives for innovation. Contests in which solvers compete for a prize offered by the contest holder have been shown to be an effective incentive mechanism. Despite considerable interest in this concept, we lack a thorough understanding of important aspects of contests; in particular, feedback from the contest holder to the ...

Tariff concessions in production sourcing

In this paper, we study a multi-stage production sourcing problem where tariff concessions can be exploited at the firm level using free trade agreements between countries. To solve the problem, an algorithm which embeds a very large-scale neighborhood (VSLN) search into a simulated annealing framework is developed. A numerical study is conducted to verify the effectiveness of the solution appr...

Input Sourcing and Multinational Production Online Appendix

I. Symmetric Countries, Frictionless World The symmetric version of the problem (τo = τv = 1 and mi = wi = w for i = h, f) satisfies all the conditions describing a symmetric first-price sealed-bid auction: each supplier observes his own cost (his “valuation”), but not the ones of his competitors, and costs are independently distributed according to a common density ψ(·) (independent private va...

Sourcing of Innovation as Trendsetting in the Imaging Sector

We also gratefully acknowledge the advise and assistance of Juan Alcacer, Dasapich Thongnopnua and Le Truong. Micropatent provided the data on patenting and their forward, backward citations in highly readable format. ABSTRACT The paper presents a preliminary framework of industry evolution taking the photographic sector as a case for documenting the role of firms in shaping the trajectory away...

Selling to Conspicuous Consumers: Pricing, Production, and Sourcing Decisions