Asymmetric Information and Global Sourcing

This paper aims to study the choice of offshoring modes made by multinationals in the presence of asymmetric information. We focus on two types of asymmetric information, namely hidden characteristics and hidden action. The former creates adverse selection problem, and the later leads to moral hazard problem, both of which incur non-trivial costs to multinationals. We show that different offshoring modes, including greenfield foreign direct investment, joint venture, and outsourcing, can serve as a means to overcome or mitigate the problem of information asymmetry. We study the conditions under which one particular type of offshore modes dominates the others. The model generates implications consistent with the patterns of the prevalence of various offshoring models over time, and across industries and countries.Asymmetric Information, Global Sourcing, Foreign Direct Investment, Joint Venture, Outsourcing

Asymmetric Information and Global Sourcing

This paper aims to study the choice of offshoring modes made by multinationals in the presence of asymmetric information. We focus on two types of asymmetric information, namely hidden characteristics and hidden action. The former creates adverse selection problem, and the later leads to moral hazard problem, both of which incur non-trivial costs to multinationals. We show that different offshoring modes, including greenfield foreign direct investment, joint venture, and outsourcing, can serve as a means to overcome or mitigate the problem of information asymmetry. We study the conditions under which one particular type of offshore modes dominates the others. The model generates implications consistent with the patterns of the prevalence of various offshoring models over time, and across industries and countries.Asymmetric Information, Global Sourcing, Foreign Direct Investment, Joint Venture, Outsourcing

R\'enyi negativities in non-equilibrium open free-boson chains

In this paper, we consider the dynamics of R\'enyi negativities after a quantum quench in the free-boson chain with homogeneous dissipation. Initially we prepare the system in the squeezed thermal state, and then let it evolves under the tight-binding bosonic Hamiltonian with local linear dissipation. We use the Lindblad equation to solve the time evolution of the covariance matrix, from which one can obtain the time dependence of R\'enyi negativities. We are interested in the weak dissipation hydrodynamic limit where a quasi-particle picture emerges. In this limit, exact results of non-equilibrium dynamics of R\'enyi negativities can be obtained using the stationary phase method. We consider the R\'enyi negativities between both adjacent and disjoint regions in a infinite chain. We numerically test our analytical predictions and perfect matches have found.Comment: 19 pages, 3 figure