“…where B C is a regression coefficient of C's percentage change in response to 1% change in revenue; for α = 0, we expect an additional cost increase of 10-50% due to greater transaction costs attributable to sharing (direct costs, except labor, will be higher); for α = 1 (inhouse production) fixed assets investments increase proportionally to revenue growth with a leverage of 101-110%. Greater investment is assumed to be planned since the production capacity is depleted (see the inputs); investment in working capital is growing in proportion to revenue growth; for α = 1 depreciation will be expressed as A = B A R, (6) where B А is a regression coefficient of A's percentage change in response to 1% change in revenue; for α = 0 depreciation growth rate is 0 (when sharing, investments in fixed assets are not expected); investments in fixed assets are financed by the growth of debt or equity in proportion to the regression coefficient; for α = 1 a pair of dummies is employed: expansion of debt (β = 1, otherwise 0), expansion of equity (γ = 1, otherwise 0); the cost of capital is assumed unchanged; demand impulse (as revenue growth) is planned within 100.01% -111% interval (expert estimate); α, β and γ are normally distributed random values, β and γ are in counterphase to each other; As a result, we obtain three possible combinations of dummies {α, β, γ} employed in our simulation model: {1,0,1}inhouse capacity expansion through debt increase; {1,1,0}inhouse capacity expansion through equity increase; {0,0,0}use of sharing. Since this simulation model was built to test a theoretical hypothesis, and not a practical result, the validity was controlled by scaling the number of iterations: 2000, 5000, 15000, 100000 iterations, as well as by reproducing the model on other companies' inputs.…”