Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/27188 
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dc.contributor.authorKorn, Evelynen
dc.contributor.authorLengsfeld, Stephanen
dc.date.accessioned2007-11-20-
dc.date.accessioned2009-08-06T13:11:09Z-
dc.date.available2009-08-06T13:11:09Z-
dc.date.issued2007-
dc.identifier.urihttp://hdl.handle.net/10419/27188-
dc.description.abstractNumerous (high-tax) countries presume that multinational firms use their transferpricing policies to shift profits into countries with lower tax rates. To avoid the corresponding loss in tax revenues, tax authorities develop constantly tightening rules to curb transfer-price distortions. Affected firms include the decision of compliance to these rules into their strategic considerations. In a scenario with arm'slength regulation in two countries, we analyze the transfer-pricing policy of a firm that uses the same transfer price for tax and managerial incentive purposes. Thus, the transfer-pricing policy is driven by three issues: interaction with competitors, minimization of tax burden, and avoidance of punishments. The model shows that tighter transfer-pricing rules may help firms to mitigate competition and to increase their profits and that non-compliance to the arm's-length principle is part of their equilibrium strategy.en
dc.language.isoengen
dc.publisher|aLeibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät |cHannoveren
dc.relation.ispartofseries|aDiskussionsbeitrag |x378en
dc.subject.jelH25en
dc.subject.jelL22en
dc.subject.jelM40en
dc.subject.ddc330en
dc.subject.stwTransferpreisen
dc.subject.stwMultinationales Unternehmenen
dc.subject.stwSteuerplanungen
dc.subject.stwAnreizvertragen
dc.subject.stwDuopolen
dc.subject.stwZwei-Länder-Modellen
dc.subject.stwTheorieen
dc.titleDuopolistic competition, taxes, and the arm's-length principle-
dc.type|aWorking Paperen
dc.identifier.ppn54984693Xen
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:han:dpaper:dp-378en

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