The paper studies the performance of joint ventures where upstream firms sell inputs to a production joint venture. It is found that joint ventures lead to overinvoicing of input prices (transfer prices) compared to integrated firms resulting in lower aggregate profits. Tax and tariff policy may improve the organizational inefficiencies of joint ventures. The analysis suggests that firms must have other reasons for forming joint ventures than those guided by production efficiency and benefits from delegation of decision-making.
Download Info
To our knowledge, this item is not available for
download. To find whether it is available, there are three
options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page
whether it is in fact available.
3. Perform a search for a similarly titled item that would be
available.
Length: 27 pages Date of creation: 1998 Date of revision: Handle: RePEc:fth:bereco:0898
Contact details of provider: Postal: Department of Economics, University of Bergen Fosswinckels Gate 6. N-5007 Bergen, Norway Phone: (+47)55589200 Fax: (+47)55589210 Web page: http://www.econ.uib.no/ More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Thomas Krichel).