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Internal Pricing

Internal PricingAuthor: Tim Baldenius
Publisher: Now Publishers Inc
Category: Book

Buy New: $75.00
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Seller: Amazon.com
Sales Rank: 4,325,700

Media: Paperback
Pages: 106
Number Of Items: 1
Shipping Weight (lbs): 0.4
Dimensions (in): 9.1 x 6.1 x 0.3

ISBN: 1601982704
Dewey Decimal Number: 332
EAN: 9781601982704
ASIN: 1601982704

Publication Date: September 22, 2009
Availability: Usually ships in 24 hours

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Product Description
Internal Pricing surveys the transfer pricing literature with a focus on commonly-used pricing schemes using incomplete contracting models. Chapter 2 develops the basic symmetric information model to compare the performance of cost-based and negotiated pricing in the absence of external input markets. Chapter 3 considers market-based pricing and the role of internal price adjustments; it ignores investments and focuses solely on trading incentives. Chapter 4 adds investments to the model of Chapter 3 and shows that investment opportunities further strengthen the case for internal adjustments. Chapter 5 reconsiders the initial analysis of Chapter 2 for the case of asymmetrically informed divisional managers. The book ends with the author's conclusions and an appendix including the mathematical proofs. A key theme running through Internal Pricing is that the firm's central office (i.e., headquarters) plays a rather limited role in mediating individual transactions. This captures the stylized empirical fact that in most firms, headquarters designs the broad "rules of the game" by choosing a pricing mechanism and compensation contracts, but usually does not get involved in pricing on a product-by-product basis.


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