Mathematical Economic Analysis On Price Discrimination And Transfer Pricing Of Intermediate Products

Nowadays,with the rapid development of market economy,it is very common to see monopolistic behaviors of enterprises,while the cases of complete competition remains extremely few.As an important pricing method for monopolistic enterprises,the study of price discrimination method attracts widespread attention.At the same time,with the deepening of the economic globalization,multinational enterprises play an increasingly important role in the world economy.Transfer pricing is a key effective strategy in the operation and management of multinational enterprises.Therefore,price discrimination and its application in the transfer pricing of intermediate products are worth further study.Meanwhile,as an important research method in the economic field,game theory has been widely used in the study of price theory.At present,domestic and foreign scholars had done a lot of research on the transfer pricing strategy of multinational companies.The research on transfer pricing without considering tax rate and external market has been relatively perfect,while the transfer pricing method based on price discrimination under the condition of the tax rate is rarely mentioned.This paper establishes the mathematical economic model using the method of game theory,and studies the price discrimination and its application in transfer price of intermediate product from the perspective of enterprise.It also provides a theoretical basis and reference for the production and decision-making of Chinese multinational enterprises.The main research contents and innovation points in this paper are as follows:1.This paper sets up a dynamic game model of Stackelberg oligopoly market,expands the demand function from linear to non-linear,and analyses the interaction effect between two enterprises’ second degree and third degree pricing discrimination and gets the two enterprises’ game equilibrium results.2.In the presence of external market competition,this paper established a complete and perfect information dynamic game model with the consideration of tax rates and studied the transfer pricing of the non-centered group multinational corporations using uniform pricing and pricing discrimination in the intermediate product.This paper gives the optimal strategy of transnational corporations and the relationship between multinational companies’ locations and the local tax rate.3.This paper firstly leads multidimensional game to transfer pricing of intermediate products,expands the one-demensional game model to the multidimensional game model and studies the applications of price discrimination in transfer pricing under the condition of a variety of alternative products exist in the final market.Then we get the method of the enterprises’ transfer pricing in the general cases.