Chwolka, Anne; Martini, Jan Thomas; Simons, Dirk - In: BuR - Business Research 3 (2010) 2, pp. 113-131
decentralized production and quality-improving investment decisions. Transfer prices based on variable costs fail to induce … investments on the upstream stage. In contrast, transfer prices based on full costs provide strong investment incentives for the … upstream divisions. However, they fail to coordinate the investment decisions. We show that negotiations prevent such …
