Theory recommends various transfer pricing schemes depending on the purpose they are designed for. In contrast, empirical evidence shows the predominance of a single scheme, namely one-step cost-based prices. Our paper concentrates on cost-based transfer, especially focusing on the coordination...

We consider a team-investment setting in which transfer prices between two divisions are negotiable. Investments are made independently and simultaneously after the bargaining stage, i.e. with a given transfer price `on the table'. Both divisions' investments jointly affect the sales price of...

In many industries like management consulting, IT consulting, or construction highly qualified employees, i.e., experts or executive managers, have to be assigned to temporary projects. In firms with many employees and various different projects, this assignment decision involves a complex...

For mitigating the problems of transfer pricing formula apportionment (FA) is discussed intensively. However, FA could even be more harmful than transfer pricing because income shifting would require changing economic decisions instead of just taking advantage of accounting options. We analyze...

We derive price limits as decision aids for identifying favorable and unfavorable contracts from the perspective of a selling firm in face of uncertain outcomes. The analysis is based on the concept of almost stochastic dominance to incorporate incomplete information about the decision-maker’s...

In many industries like management consulting, IT consulting, or construction highly qualified employees, i.e., experts or executive managers, have to be assigned to temporary projects. In firms with many employees and various different projects, this assignment decision involves a complex...

The introduction of a common consolidated corporate tax base (CCCTB) and tax allocation via formula apportionment (FA) is hotly debated in the European Union (EU) since more than a decade. While the literature has thoroughly analyzed the economic effects of FA from a macro-level perspective, the...

This paper analyzes the potential of one-step transfer prices based on either variable or full costs for coordinating decentralized production and quality-improving investment decisions. Transfer prices based on variable costs fail to induce investments on the upstream stage. In contrast,...

We analyze price limits as decision aids for identifying favorable and unfavorable contracts from the perspective of a selling firm. The corresponding decision problem is shaped by uncertainty of the outcomes and incomplete information about the decision maker's preferences. The proposed price...