search query: @author Balachandran, K.R. / total: 4
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| Author: | Balachandran, K.R. Ronen, J. Sungsoo, Y. |
| Title: | The role of transfer price for coordination and control within a firm |
| Journal: | Review of Quantitative Finance and Accounting
2000 : MAR, VOL. 14:2, p. 161-192 |
| Index terms: | Adverse selection COMPANIES Information Moral hazard Transfer pricing |
| Language: | eng |
| Abstract: | This paper explores the role of transfer prices as coordinating mechanisms within a firm. Three cases are analyzed and compared to show how quantity and effort are affected as assumptions on observability are progressively relaxed. The main results are: First, the optimal transfer price is standard average cost plus. Second, it is not necessarily decreasing in quantity unlike the downward sloping demand function. |
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