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Federal Reserve Bank of Chicago
Working Paper Series
Supplier switching and outsourcing
Yukako Ono
Victor Stango
Abstract

We examine supplier switching decisions using a unique database that tracks firms (credit unions) and their suppliers (data processing vendors); the data are in a panel, allowing us to track supplier switching decisions at a new level of detail. We focus on two sets of relationships. First, we estimate a model that relates supplier choices and switching to a variety of buyer- and supplier-specific characteristics. Second, we examine how> switching depends on the vendor relationships that credit unions choose: one is a partial form of outsourcing while the other is more complete. This allows us to estimate how supplier switching interacts with organizational form.


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Yukako Ono & Victor Stango, Supplier switching and outsourcing, Federal Reserve Bank of Chicago, Working Paper Series WP-05-22, 2005.
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Keywords: Credit unions ; Contracting out
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