--- res: bibo_abstract: - " In our model two divisions negotiate over type-dependent contracts to\r\n determine an intrafirm transfer price for an intermediate product. Since the\r\n upstream division's (seller's) costs and downstream division's (buyer's)\r\n revenues are supposed to be private information, we formally consider\r\n cooperative bargaining problems under incomplete information. This means\r\n that the two divisions consider allocations of expected utility generated by\r\n mechanisms that satisfy (interim) individual rationality, incentive\r\n compatibility and/or ex post efficiency. Assuming two possible types for\r\n buyer and seller each, we first establish that the bargaining problem is\r\n regular, regardless whether or not incentive and/or efficiency constraints\r\n are imposed. This allows us to apply the generalized Nash bargaining\r\n solution to determine fair transfer payments and transfer\r\n quantities. In particular, the generalized Nash bargaining solution tries to\r\n balance divisional profits, while incentive constraints are still in\r\n place. In that sense a fair profit division is generated. Furthermore, by\r\n means of illustrative examples we derive general properties of this solution\r\n \ for the transfer pricing problem and compare the model developed here with\r\n \ the models existing in the literature. We demonstrate that there is a\r\n tradeoff between ex post efficiency and fairness.\r\n@eng" bibo_authorlist: - foaf_Person: foaf_givenName: Claus-Jochen foaf_name: Haake, Claus-Jochen foaf_surname: Haake foaf_workInfoHomepage: http://www.librecat.org/personId=20801 - foaf_Person: foaf_givenName: Sonja foaf_name: Recker, Sonja foaf_surname: Recker bibo_doi: 10.1007/s10726-018-9592-8 bibo_issue: '6' bibo_volume: 27 dct_date: 2018^xs_gYear dct_language: eng dct_publisher: Springer@ dct_title: The Generalized Nash Bargaining Solution for Transfer Price Negotiations under Incomplete Information@ ...