All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC
ralph lauren polo

 
Jumpei Hamamura
 
''Environmental corporate social responsibility and strategic transfer pricing in quantity competition''
( 2021, Vol. 41 No.4 )
 
 
Decision-making by environmentally conscious managers with environmental corporate responsibility (ECSR) is important because many companies emphasize environmental damage reduction for practical achievement of sustainable development. This study explores the transfer prices set by environmentally conscious managers under ECSR in situations of quantity competition. Whereas observable strategic transfer prices are generally below marginal cost in quantity competitions, our result suggests that the transfer price set by an environmentally conscious manager with ECSR exceeds marginal cost in quantity competition. This study provides a new rationale for internal transfer prices exceeding marginal cost, which is observed in practice.
 
 
Keywords: transfer pricing, decentralized firm, environmental corporate social responsibility, quantity competition
JEL: M1 - Business Administration: General
L1 - Market Structure, Firm Strategy, and Market Performance: General
 
Manuscript Received : Aug 18 2021 Manuscript Accepted : Dec 29 2021

  This abstract has been downloaded 418 times                The Full PDF of this paper has been downloaded 139707 times