{"product_id":"9781601982704","title":"Internal Pricing","description":"Internal Pricing surveys of 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.","brand":"Now Publishers","offers":[{"title":"Default Title","offer_id":47031146217712,"sku":"9781601982704","price":75.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0737\/7593\/9824\/files\/9781601982704_p0.jpg?v=1763815391","url":"https:\/\/shop-qa.barnesandnoble.com\/products\/9781601982704","provider":"Barnes \u0026 Noble (DEV)","version":"1.0","type":"link"}