IDEAS home Printed from https://ideas.repec.org/a/wly/agribz/v23y2007i2p279-292.html
   My bibliography  Save this article

Negotiated transfer pricing: Theory and implications for value chains in agribusiness

Author

Listed:
  • Bodo E. Steiner

    (Department of Rural Economy, Edmonton, Alberta T6G 2H1, Canada)

Abstract

In this article, the author reviews the transfer pricing problem that occurs when trust, the structure of bargaining, relation-specific investment, and complementarities in organizational design affect trading relationships. A literature review focuses on negotiated transfer pricing in the context of both intra- and interfirm transactions. The author analyzes the strategic implications of transfer pricing for organizational design as a result of the imposition of strong informational assumptions without the explicit consideration of the complementary incentives in organizational design. The author review demonstrates that there are practical benefits from addressing these issues, and points to a number of directions for future analysis. [JEL classification: D82, L23, L15, L66] © 2007 Wiley Periodicals, Inc. Agribusiness 23: 279-292, 2007.

Suggested Citation

  • Bodo E. Steiner, 2007. "Negotiated transfer pricing: Theory and implications for value chains in agribusiness," Agribusiness, John Wiley & Sons, Ltd., vol. 23(2), pages 279-292.
  • Handle: RePEc:wly:agribz:v:23:y:2007:i:2:p:279-292
    DOI: 10.1002/agr.20117
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1002/agr.20117
    File Function: Link to full text; subscription required
    Download Restriction: no

    References listed on IDEAS

    as
    1. Hayenga, Marvin L. & Schrader, Lee F., 1980. "Formula Pricing in Five Commodity Marketing Systems," Staff General Research Papers Archive 11303, Iowa State University, Department of Economics.
    2. Brent Hueth & Ethan Ligon, 1999. "Producer Price Risk and Quality Measurement," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(3), pages 512-524.
    3. MacDonald, James M. & Perry, Janet E. & Ahearn, Mary Clare & Banker, David E. & Chambers, William & Dimitri, Carolyn & Key, Nigel D. & Nelson, Kenneth E. & Southard, Leland W., 2004. "Contracts, Markets, and Prices: Organizing the Production and Use of Agricultural Commodities," Agricultural Economics Reports 34013, United States Department of Agriculture, Economic Research Service.
    4. Ghosh, Dipankar, 2000. "Complementary arrangements of organizational factors and outcomes of negotiated transfer price," Accounting, Organizations and Society, Elsevier, vol. 25(7), pages 661-682, October.
    5. John R. Schroeter & Azzeddine M. Azzam, & Mingxia Zhang, 2000. "Measuring Market Power in Bilateral Oligopoly: The Wholesale Market for Beef," Southern Economic Journal, Southern Economic Association, vol. 66(3), pages 526-547, January.
    6. Steiner, Bodo, 2006. "Governance Reform of German food safety regulation: Cosmetic or real?," MPRA Paper 26252, University Library of Munich, Germany.
    7. Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
    8. Hueth Brent & Marcoul Philippe, 2003. "An Essay on Cooperative Bargaining in U.S. Agricultural Markets," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 1(1), pages 1-15, March.
    9. Ramon Casadesus-Masanell, 2004. "Trust in Agency," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 13(3), pages 375-404, September.
    10. Eckel, Catherine C. & Wilson, Rick K., 2004. "Is trust a risky decision?," Journal of Economic Behavior & Organization, Elsevier, vol. 55(4), pages 447-465, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Steiner, Bodo E., 2007. "Formal beef alliances and alignment challenges: issues in contracting, pricing and quality," Project Report Series 7709, University of Alberta, Department of Resource Economics and Environmental Sociology.
    2. Steiner, Bodo E. & Lan, Kevin & Unterschultz, James R. & Boxall, Peter C. & Laate, Emmanuel & Yang, Danyi, 2012. "Producer preferences towards vertical coordination: The case of Canadian beef alliances," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122441, European Association of Agricultural Economists.
    3. repec:fan:ecaqec:v:html10.3280/ecag2017-001005 is not listed on IDEAS

    More about this item

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:agribz:v:23:y:2007:i:2:p:279-292. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.