EconPapers    
Economics at your fingertips  
 

FORMULA APPORTIONMENT AND TRANSFER PRICING UNDER OLIGOPOLISTIC COMPETITION

Søren Nielsen, Pascalis Raimondos () and Guttorm Schjederup
Additional contact information
Guttorm Schjederup: Norwegian School of Economics and Business Administration, Postal: Norwegian School of Economics and Business Administration, CESifo, Helleveien 30, N-5045 Bergen, Norway

Authors registered in the RePEc Author Service: Guttorm Schjelderup

No 18-2000, Working Papers from Copenhagen Business School, Department of Economics

Abstract: This paper demonstrates that under conditions of imperfect (oligopolistic) competition, a transition from separate accounting (SA) to formula apportionment (FA) does not eliminate the problem of profit shifting via transfer pricing. In particular, if affiliates of a multination firm face oligopolistic competition, it is beneficial for the multinational to manipulate transfer prices for tax-saving as well as strategic reasons under both FA and SA. The analysis shows that a switch from SA rules to FA rules may actually strengthen profit shifting activities by multinationals.

Keywords: Formula apportionment; Transfer pricing; Oligopolistic competition (search for similar items in EconPapers)
JEL-codes: D43 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2000-10-01
New Economics Papers: this item is included in nep-mic
References: Add references at CitEc
Citations:

Downloads: (external link)
http://openarchive.cbs.dk/cbsweb/handle/10398/7642 (application/pdf)
Full text not avaiable

Related works:
Journal Article: Formula Apportionment and Transfer Pricing under Oligopolistic Competition (2003) Downloads
Working Paper: Formula Apportionment and Transfer Pricing under Oligopolistic Competition (2001) Downloads
Working Paper: Formula Apportionment and Transfer Pricing under Oligopolistic Competition Downloads
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:hhs:cbsnow:2000_018

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers from Copenhagen Business School, Department of Economics Copenhagen Business School, Department of Economics, Porcelaenshaven 16 A. 1.floor, DK-2000 Frederiksberg, Denmark. Contact information at EDIRC.
Bibliographic data for series maintained by CBS Library Research Registration Team ().

 
Page updated 2025-03-30
Handle: RePEc:hhs:cbsnow:2000_018