Research on Transfer Pricing Strategy Based on Incomplete Information

DOI

10.2991/aebmr.k.201211.086How to use a DOI?

Keywords

Incomplete information, transfer pricing, low cost identification factor, differential pricing

Abstract

This paper studies the transfer pricing of enterprise groups when there is incomplete information about the cost in the final product market. It also compares the transfer price, balanced output and profits of the group headquarters under the two methods of uniform pricing and differential pricing. The conclusions are as follows: The internal transfer price of the intermediate product and the equilibrium output of the downstream subsidiary and the external market, the size relation under the two pricing methods is related to the low cost identification factor and the probability that the cost of the external market is high; and the headquarters of the group can get higher profits by differential pricing of intermediate products than by uniform pricing.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Shuting Yi
AU  - Shaogang Chen
PY  - 2020
DA  - 2020/12/14
TI  - Research on Transfer Pricing Strategy Based on Incomplete Information
BT  - Proceedings of the Fifth International Conference on Economic and Business Management (FEBM 2020)
PB  - Atlantis Press
SP  - 510
EP  - 515
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201211.086
DO  - 10.2991/aebmr.k.201211.086
ID  - Yi2020
ER  -