We use incentivized economics experiments to test both the point predictions and comparative static predictions of optimal transfer pricing models, comparing behavior under varying conditions, including wholly versus partially-owned subsidiaries and different tariff and tax rates. As predicted,...

The economic productivity of publicly funded wood preservatives research from 1950 to 1980 exemplifies public research in the forest product industries. We find a high internal rate of return for wood preservatives, nearly 300 percent. The research investments would not have been made by private...

Interest in the economic impacts of research and development (R&D) among forest economists is of relatively recent vintage when compared with the long history of such inquiries in agricultural economics. In contrast to the literature in agricultural economics, which can be traced to the seminal...

Our model describes optimal transfer prices as a function of the number of multi-divisional firms. Decentralized firms imperfectly observe downstream pricing and quantity decisions. Therefore, transfer prices have two strategic functions requiring a trade-off: limiting affiliated downstream...