EconPapers    
Economics at your fingertips  
 

Joint Ventures and Transfer Pricing Rivalry

Tommy Gabrielsen () and Guttorm Schjelderup ()

Norway; Department of Economics, University of Bergen from Department of Economics, University of Bergen

Abstract: The paper studies the performance of joint ventures where upstream firms sell inputs to a production joint venture. It is found that joint ventures lead to overinvoicing of input prices (transfer prices) compared to integrated firms resulting in lower aggregate profits. Tax and tariff policy may improve the organizational inefficiencies of joint ventures. The analysis suggests that firms must have other reasons for forming joint ventures than those guided by production efficiency and benefits from delegation of decision-making.

Keywords: PRICING; JOINT VENTURES (search for similar items in EconPapers)
JEL-codes: L22 L10 (search for similar items in EconPapers)
Date: 1998
References: Add references at CitEc
Citations: Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Joint Ventures and Transfer Pricing Rivalry (1998)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fth:bereco:0898

Access Statistics for this paper

More papers in Norway; Department of Economics, University of Bergen from Department of Economics, University of Bergen Department of Economics, University of Bergen Fosswinckels Gate 6. N-5007 Bergen, Norway. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Krichel ().

 
Page updated 2019-10-24
Handle: RePEc:fth:bereco:0898