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...Associate professor of marketing nus business school national university singapore link tel e mail bizleeks edu sg economics exeter streatham court rennes drive ex pu uk fax email irene ng ac this paper presents a game theoretic analysis the impact both production and transaction costs on single or multiple source purchasing decision dyadic interactions involving buyer seller triadic two suppliers are examined to gain more precise understanding how small number might influence cost we show that is maximized when follows strategy learning specificity present only if splits supply contract in such way as equalize effects across will be able appropriate efficiency gains achieved by its interact governance decisions equilibrium optimal due economies scale large but those internalization key words theory numbers managers often face question whether purchase materials from research has shown there several advantages disadvantages following compared g treleven segal presutti leavy wilson comm...