firms and labor is used for production. We show that two different types of equilibria may exist, one with factor price …

This paper analyzes incentives of a multinational enterprise to manipulate an internal transfer price to take advantage … uncontrollable price” as two alternative implementations of the so-called arm’s length principle (ALP) to mitigate this problem. Tax … sourcing incentives. We also develop a novel theory of vertical foreclosure as an equilibrium outcome of strategic transfer …

-level productivity and scale effects. I show here that the incorporation of theory-based endogenous markups into AGE models is not …