---
_id: '5146'
abstract:
- lang: eng
text: In this paper, we analyze a model in which two divisions negotiate over an
intrafirm transfer price for an intermediate product. Formally, we consider bargaining
problems under incomplete information, since the upstream division’s (seller's)
costs and downstream division's (buyer's) revenues are supposed to be private
information. Assuming two possible types for buyer and seller each, we first establish
that the bargaining problem is regular, regardless whether incentive and/or efficiency
constraints are imposed. This allows us to apply the generalized Nash bargaining
solution to determine transfer payments and transfer probabilities. Furthermore,
we derive general properties of this solution for the transfer pricing problem
and compare the model developed here with the existing literature for negotiated
transfer pricing under incomplete information. In particular, we focus on the
models presented in Wagenhofer (1994).
author:
- first_name: Sonja
full_name: Brangewitz, Sonja
last_name: Brangewitz
- first_name: Claus-Jochen
full_name: Haake, Claus-Jochen
id: '20801'
last_name: Haake
citation:
ama: Brangewitz S, Haake C-J. Cooperative Transfer Price Negotiations under Incomplete
Information. Vol 64. CIE Working Paper Series, Paderborn University; 2013.
apa: Brangewitz, S., & Haake, C.-J. (2013). Cooperative Transfer Price Negotiations
under Incomplete Information (Vol. 64). CIE Working Paper Series, Paderborn
University.
bibtex: '@book{Brangewitz_Haake_2013, series={Working Papers CIE}, title={Cooperative
Transfer Price Negotiations under Incomplete Information}, volume={64}, publisher={CIE
Working Paper Series, Paderborn University}, author={Brangewitz, Sonja and Haake,
Claus-Jochen}, year={2013}, collection={Working Papers CIE} }'
chicago: Brangewitz, Sonja, and Claus-Jochen Haake. Cooperative Transfer Price
Negotiations under Incomplete Information. Vol. 64. Working Papers CIE. CIE
Working Paper Series, Paderborn University, 2013.
ieee: S. Brangewitz and C.-J. Haake, Cooperative Transfer Price Negotiations
under Incomplete Information, vol. 64. CIE Working Paper Series, Paderborn
University, 2013.
mla: Brangewitz, Sonja, and Claus-Jochen Haake. Cooperative Transfer Price Negotiations
under Incomplete Information. Vol. 64, CIE Working Paper Series, Paderborn
University, 2013.
short: S. Brangewitz, C.-J. Haake, Cooperative Transfer Price Negotiations under
Incomplete Information, CIE Working Paper Series, Paderborn University, 2013.
date_created: 2018-10-31T09:20:15Z
date_updated: 2022-01-06T07:01:39Z
ddc:
- '040'
department:
- _id: '205'
- _id: '475'
file:
- access_level: closed
content_type: application/pdf
creator: stela
date_created: 2018-10-31T09:22:19Z
date_updated: 2018-10-31T09:22:19Z
file_id: '5148'
file_name: WP - Cooperative Transfer Price Negotiations under Incomplete Information.pdf
file_size: 430826
relation: main_file
success: 1
file_date_updated: 2018-10-31T09:22:19Z
has_accepted_license: '1'
intvolume: ' 64'
keyword:
- Transfer Pricing
- Negotiation
- Generalized Nash Bargaining Solution
- Incomplete Information
language:
- iso: eng
project:
- _id: '1'
name: SFB 901
- _id: '2'
name: SFB 901 - Project Area A
- _id: '7'
name: SFB 901 - Subproject A3
publisher: CIE Working Paper Series, Paderborn University
series_title: Working Papers CIE
status: public
title: Cooperative Transfer Price Negotiations under Incomplete Information
type: working_paper
user_id: '477'
volume: 64
year: '2013'
...