Research On Transfer Pricing Under The Oligarch Monopoly Market

With increasing economic integration, many Chinese enterprises are seeking to enlarge their scales to establish Enterprise Groups. It makes the transfer pricing decision thus becomes valuable and significant.First, this paper summarized the basic theory of study on this topic, then summed up the related knowledge of transfer pricing, and came to the conclusion that there were many factors influenced the transfer pricing decisions, one of which was the market. So in chapter three, in virtue of demand theory and game theory, using the Hotelling Model for reference, we got the demand function of the Oligarch monopoly market, then used it into transfer pricing decision. With the different environment of Oligarch monopoly market, this paper analyzed the transfer pricing decision. In its analysis, the thesis takes into consideration the effect of external environment to pricing decision by studying the Oligarch monopoly form of intermediate product market and final product market, using converse inductive method, then got the transfer price. Based on the analysis, summed up the approach of pricing decision under the Oligarch monopoly market .Using limited-profile approach, we got the equilibrium price. At last, put forward advices about how to make transfer pricing decision.