This study investigates whether and how environmental risk affects the efficiency (i.e., overall organizational profit) of negotiated transfer prices. We discuss three fairness-based sharing norms and the implications each would have for efficiency in our setting. We conduct an experiment in...

This study investigates how headquarters involvement affects the efficiency of decentralized transfer price negotiations. Prior research assumes that decentralized managers negotiate transfer prices autonomously. However, evidence suggests that headquarters can become involved in transfer price...