Digital Library of Zielona Góra contains 63 052 digital objects
Object
Title: Negotiating transfer pricing using the Nash bargaining solution
Contributor:
Stefanowski, Jerzy - ed. ; Krawiec, Krzysztof - ed. ; Wrembel, Robert - ed.
Subtitle:
Group publication title:
Abstract:
This paper analyzes and proposes a solution to the transfer pricing problem from the point of view of the Nash bargaining game theory approach. We consider a firm consisting of several divisions with sequential transfers, in which central management provides a transfer price decision that enables maximization of operating profits. Price transferring between divisions is negotiable throughout the bargaining approach. Initially, we consider a disagreement point (status quo) between the divisions of the firm, which plays the role of a deterrent. ; We propose a framework and a method based on the Nash equilibrium approach for computing the disagreement point. Then, we introduce a bargaining solution, which is a single-valued function that selects an outcome from the feasible pay-offs for each bargaining problem that is a result of cooperation of the divisions of the firm involved in the transfer pricing problem. The agreement reached by the divisions in the game is the most preferred alternative within the set of feasible outcomes, which produces a profit-maximizing allocation of the transfer price between divisions. For computing the bargaining solution, we propose an optimization method. An example illustrating the usefulness of the method is presented.
Publisher:
Zielona Góra: Uniwersytet Zielonogórski
Resource Identifier:
DOI:
Pages:
Source:
AMCS, volume 27, number 4 (2017) ; click here to follow the link
Language:
License CC BY 4.0:
Rights:
Biblioteka Uniwersytetu Zielonogórskiego
Object collections:
- Digital Library of Zielona Góra > Repository > Faculties > Faculty of Computer, Electrical and Control Engineering
- Digital Library of Zielona Góra > Repository > Types of work > Articles
- Digital Library of Zielona Góra > Repository > Scientific journals and UZ publishing series > International Journal of Applied Mathematics and Computer Science (AMCS) > International Journal of Applied Mathematics and Computer Science (AMCS) (2017)
Last modified:
Jul 14, 2025
In our library since:
Jul 7, 2025
Number of object content hits:
30
All available object's versions:
https://zbc.uz.zgora.pl/publication/100722
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International Journal of Applied Mathematics and Computer Science (AMCS), volume 27, number 1 (2017)
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International Journal of Applied Mathematics and Computer Science (AMCS), volume 27, number 2 (2017)
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International Journal of Applied Mathematics and Computer Science (AMCS), volume 27, number 3 (2017)
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International Journal of Applied Mathematics and Computer Science (AMCS), volume 27, number 4 (2017)
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| Edition name | Date |
|---|---|
| Negotiating transfer pricing using the Nash bargaining solution | Jul 14, 2025 |
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