In this paper we analyze the optimal regulation of an internationally integrated monopolist, producing in one country and selling in another country. The monopolist’s pricing policy is constrained by transfer pricing regulations, and is subject to different tax rates on profits in the two...

In this paper we analyze the optimal regulation of an internationally integrated monopolist, producing in one country and selling in another country. The monopolist’s pricing policy is constrained by transfer pricing regulations, and is subject to different tax rates on profits in the two...