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ON TWO‐SOURCE FACTOR PURCHASING
Author(s) -
Horowitz Ira
Publication year - 1986
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.1986.tb00226.x
Subject(s) - purchasing , phenomenon , unit (ring theory) , risk aversion (psychology) , factor (programming language) , microeconomics , economics , business , computer science , marketing , financial economics , expected utility hypothesis , mathematics , physics , mathematics education , quantum mechanics , programming language
Two‐source purchasing at differing factor‐unit costs is a common real‐world phenomenon. So too are uncertainty and risk aversion which, as this paper demonstrates, provides one explanation for why firms on occasion purchase from high‐cost sellers.