Behrens, Kristian; Peralta, Susana; Picard, Pierre M. - Centre Interuniversitaire sur le Risque, les Politiques … - 2009
We study the impact of transfer pricing rules on sales prices, firms’ organizational structure, and consumers’ utility within a two-country monopolistic competition model featuring source-based profit taxes that differ across countries. Firms can either become multinationals, i.e., they...