infonet-economy

This paper analyses the use of transfer pricing as a strategic device in divisionalized firms facing duopolistic price competition. When transfer prices are observable, both firms’ headquarters will charge a transfer price above the marginal cost of the intermediate product to induce their marketing managers to behave as softer competitors in the final product market. When transfer…

The valuation of Flexible Manufacturing Systems is one of the most frequently undertaken productivity improvement activities. In practice, the introduction of an FMS into industry must be done on the basis of cost justification. Recently developed techniques for the evaluation of the value of flexibility typically include the computation of stochastic dynamic programs. However, the…