What question did this study set out to answer?

This research investigates how managers perceive the impact of market prices and profit comparisons on negotiated transfer prices.

Profit comparisons, market prices and managers' judgments about negotiated transfer prices.

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Examines how managers' judgments impact transfer prices based on market prices and profit comparisons, suggesting complex influences on negotiations.

This research investigates how managers perceive the impact of market prices and profit comparisons on negotiated transfer prices.
Analyzed experienced managers' judgments
Examined the effects of market prices on transfer price negotiations
Assessed how profit comparisons influenced managers' decision-making
Managers expect limited market price influence due to profit comparison concerns
Market price affects reservation-price estimates, but less so with perceived unfair profit distributions
Variances and biases in price estimates rise as market prices diverge from equal profit levels

Luft et al. (1997) studied this question.

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Examines how managers' judgments impact transfer prices based on market prices and profit comparisons, suggesting complex influences on negotiations.