Experimental evidence on transfer pricing

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Veröffentlicht in:	International journal of management and economics 50(2016), 1 vom: Apr./Juni, Seite 27-48
Personen und Körperschaften:	Tran, Quoc H. (VerfasserIn), Croson, Rachel Toni Algaze (VerfasserIn), Seldon, Barry J. (VerfasserIn)
Titel:	Experimental evidence on transfer pricing/ Quoc H. Tran, Rachel T.A. Croson, Barry J. Seldon
Format:	E-Book-Kapitel
Sprache:	Englisch
veröffentlicht:	2016
Gesamtaufnahme:	: International journal of management and economics, 50(2016), 1 vom: Apr./Juni, Seite 27-48 , volume:50
Schlagwörter:	Aufsatz in Zeitschrift
Quelle:	Verbunddaten SWB Lizenzfreie Online-Ressourcen

Details
Zusammenfassung:	We use incentivized economics experiments to test both the point predictions and comparative static predictions of optimal transfer pricing models, comparing behavior under varying conditions, including wholly versus partially-owned subsidiaries and different tariff and tax rates. As predicted, we find that transfer prices are responsive to relative tax and tariff rates as well as ownership proportions. Additionally, we examine convergence and learning in this setting. While individuals do not choose optimal transfer prices, their choices converge to optimal levels with experience. This paper thus makes two important contributions. First, by comparing behavior with theoretical predictions it provides evidence of whether (and when) individuals set transfer prices optimally. Second, by comparing behavior under conditions of full and partial ownership it provides evidence on the impact of policy interventions (like regulating ownership proportions by MNEs) on tax revenues.
ISSN:	2543-5361
DOI:	10.1515/ijme-2016-0010