Titel
Dual Sourcing and Resilient Supply Chains: The Case of Essential Resources
Autor*in
Rune Stenbacka
Hanken School of Economics and Helsinki Graduate School of Economics
Abstract
The resilience of supply chains is analyzed in a model of strategic technology investments in markets with essential resources. With a monopoly supplier, dual sourcing is a strategy to reduce switching costs in the long-run. It serves as an insurance mechanism against future opportunism by providing access to competitive global markets. Investments in dual sourcing are required to limit abuse of market power by the active source provider, even though the option of dual sourcing may not be exercised in equilibrium. The analysis has implications for the European natural gas market. Liquefied natural gas terminals may serve a strategic purpose of limiting ex-post opportunism even when delivering gas by pipeline is more efficient.
Stichwort
Dual sourcingResilienceSwitching costsPredatory investmentsSupply securityGeopolitics
Objekt-Typ
Sprache
Englisch [eng]
Persistent identifier
phaidra.univie.ac.at/o:2044991
Erschienen in
Titel
Atlantic Economic Journal
Band
51
Ausgabe
4
ISSN
0197-4254
Erscheinungsdatum
2023
Seitenanfang
223
Seitenende
241
Publication
Springer Science and Business Media LLC
Erscheinungsdatum
2023
Zugänglichkeit
Rechte
Rechteangabe
© The Author(s) 2023
Universität Wien | Universitätsring 1 | 1010 Wien | T
+43-1-4277-0