We reconsider the hold-up problem under symmetric information when more than two parties form a 'supply chain'. The parties are assumed to renegotiate bilaterally and sequentially. Potential trade distortions then arise in addition to the usual investment problem. Following Edlin and...

The paper considers information flow in a profit-centre organization. There is internal trade between two divisions. Headquarters records realized sales revenues and decides whether or not to pass this information on to the selling division. The selling division announces a cost-based...

The use of information plays an important role in the choice of transfer prices (TP). We discuss the information provision of two centralized mechanisms, namely, actual-cost and standard-cost based TP. Actual cost based TP use all available cost information whereas standard cost based TP only...