Research on Transfer Pricing Strategy Based on Incomplete Information
- 10.2991/aebmr.k.201211.086How to use a DOI?
- Incomplete information, transfer pricing, low cost identification factor, differential pricing
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.
- © 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/).
Cite this article
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 -