Optimal Transfer Pricing: Competition Mode, Demand and Strategic Characteristics, and Production Technology

2012 ◽  
Author(s):  
Winston W. Chang ◽  
Han Eol Ryu
Keyword(s):  
Production Technology ◽  
Transfer Pricing ◽  
Optimal Transfer ◽  
Competition Mode

scholarly journals Experimental Evidence on Transfer Pricing

2016 ◽  
Vol 50 (1) ◽  
pp. 27-48 ◽  
Author(s):  
Quoc H. Tran ◽  
Rachel T. A. Croson ◽  
Barry J. Seldon
Keyword(s):  
Transfer Pricing ◽  
Tax Rates ◽  
Optimal Transfer ◽  
Policy Interventions ◽  
Economics Experiments ◽  
Theoretical Predictions ◽  
Transfer Prices ◽  
Partial Ownership ◽  
Tariff Rates ◽  
The Impact

Abstract We use incentivized economics experiments to test both the point predictions and comparative static predictions of optimal transfer pricing models, comparing behavior under varying conditions, including wholly versus partially-owned subsidiaries and different tariff and tax rates. As predicted, we find that transfer prices are responsive to relative tax and tariff rates as well as ownership proportions. Additionally, we examine convergence and learning in this setting. While individuals do not choose optimal transfer prices, their choices converge to optimal levels with experience. This paper thus makes two important contributions. First, by comparing behavior with theoretical predictions it provides evidence of whether (and when) individuals set transfer prices optimally. Second, by comparing behavior under conditions of full and partial ownership it provides evidence on the impact of policy interventions (like regulating ownership proportions by MNEs) on tax revenues.

Optimal transfer pricing under postcontract information

1992 ◽  
Vol 8 (2) ◽  
pp. 329-352 ◽  
Author(s):  
RAJIV D. BANKER ◽  
SRIKANT M. DATAR
Keyword(s):  
Transfer Pricing ◽  
Optimal Transfer

Optimal Transfer Pricing for the Multinational Firm

1972 ◽  
Vol 1 (3) ◽  
pp. 74 ◽  
Author(s):  
J. William Petty II ◽  
Ernest W. Walker
Keyword(s):  
Transfer Pricing ◽  
Multinational Firm ◽  
Optimal Transfer
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