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Transfer pricing in complex organizations: a review and integration of recent empirical and analytical research

  • Severin V. Grabski

Abstract

Transfer pricing literature can be categorized according to the type of model employed and whether it is analytical or empirical. The major models are economic [based on Hirshleifer, 1956]; mathematical programming [Dopuch and Drake, 1964]; and behavioural [Watson and Baumler, 1975]. The objective of this paper is to review the recent literature (1974–1983) on transfer pricing and to try to discern future directions and possibilities for research. In particular, research relating to the major theoretical models (economic, mathematical programming, and behavioural) and other more ad hoc approaches is integrated with the empirical research on transfer pricing practices. In addition, the behavioural and organizational implications of transfer pricing are addressed with respect to the issues of organizational optimization, and integration and differentiation.

Keywords

Central Management Management Account Transfer Price Profit Center Professional Bureaucracy 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Annotated Bibliography

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  2. 2.
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  3. 3.
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Copyright information

© Springer Science+Business Media Dordrecht 1985

Authors and Affiliations

  • Severin V. Grabski
    • 1
  1. 1.Michigan State UniversityUSA

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