| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5078058 | International Journal of Industrial Organization | 2013 | 12 Pages |
Abstract
⺠Transfer prices govern intra-firm transactions among the firm's divisions. ⺠In oligopoly, optimal transfer prices differ from those charged to unrelated buyers. ⺠The arm's length principle (ALP) restricts such strategic use of transfer pricing. ⺠We study how the ALP changes the nature of dynamic competition in oligopoly. ⺠The ALP renders tacit collusion more stable than when firms are not subject to it.
Related Topics
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Economics and Econometrics
Authors
Chongwoo Choe, Noriaki Matsushima,