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国外营销论文精品Starting small in an unfamiliar environment
International Journal of Industrial Organization
21 (2003) 1021–1042
/locate/econbase
S tarting small in an unfamiliar environment
James E. Raucha,b , *, Joel Watsona
aDepartment of Economics, University of California, San Diego, La Jolla, CA 92093-0508, USA
bNational Bureau of Economic Research, Cambridge, MA 02138, USA
Received 20 July 2001; received in revised form 21 November 2002; accepted 17 December 2002
Abstract
We design a simple model of a developed country buyer’s search for a less developed
country supplier and the subsequent relationship between the two parties. Matched firms can
‘start small’ with a trial order to gain information about the ability of the LDC supplier to
successfully fill a large order. We show that the propensity for the buyer to start small
increases with the cost of search for a new supplier and decreases with the probability that
the current or new supplier can fulfill the large order successfully after training. We provide
supportive empirical evidence for these and other results.
2003 Elsevier B.V. All rights reserved.
JEL classification : L24; D83
Keywords : Outsourcing; Search; Technology Transfer; Uncertainty
1. Introduction
Partnerships often begin in a state of uncertainty, where there is some doubt
about the prospect of success. In such an environment, the partners may ‘start
small’ by first attempting small-scale projects and then, if they are successful,
graduating to larger ones. In this way, the parties structure their relationship in
*Corresponding author. Tel.: 11-858-534-2405; fax: 11-858-534-7040.
E-mail address: jrauch@ (J.E. Rau
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