Abstract:
The study of the impact of the price level on the economic results of the system was carried out taking into account the degree of economic integration of participants in the system. Moreover, if the prices of intermediate products supplied to the market are relatively high, then the decrease in the volume of production of the main product of the focus company may reach a critical level at which the expediency of creating a structure for the production of a high-tech product in such quantities will be questionable. This case determines the need to regulate the level of transfer prices.
To study the tasks as a formal tool for describing the functioning of the system, matrix modeling based on the methodology of intersectoral balance (MOB) was used, economic and mathematical models were proposed that include supply and demand conditions in determining domestic prices. The results of the study contribute to an understanding of the optimal internal pricing policy of a company with horizontal and vertical links.
The study of the impact of the price level on the economic results of the system was carried out taking into account the degree of economic integration of participants in the system. Moreover, if the prices of intermediate products supplied to the market are relatively high, then the decrease in the volume of production of the main product of the focus company may reach a critical level at which the expediency of creating a structure for the production of a high-tech product in such quantities will be questionable. This case determines the need to regulate the level of transfer prices.
The object of consideration in the article is a production and technological chain consisting of fi rms with vertical and horizontal interaction. The purpose of the parent company in such a structure is to manufacture complex products, the components of which are component products supplied by the companies entering the system along technological chains. An important element of the functioning of such systems is the level of internal (transfer) prices for products supplied along the chain. The choice of an approach to the formation of the level of internal prices signifi cantly affects the performance of each participant in the chain and the system as a whole.
The scientifi c novelty of the study is the deepening of the methodological base for describing the interaction of participants in the production and technological chain in the process of forming internal prices. The article presents the results of a comparative analysis of the application of two approaches to determining transfer prices – at the cost level and using the “cost plus” method. It has been established that the formation of internal prices between interdependent entities based on market mechanisms gives worse results for the parent company in the chain than at prices equal to costs.
The object of consideration in the article is a production and technological chain consisting of fi rms with vertical and horizontal interaction. The purpose of the parent company in such a structure is to manufacture complex products, the components of which are component products supplied by the companies entering the system along technological chains. An important element of the functioning of such systems is the level of internal (transfer) prices for products supplied along the chain. The choice of an approach to the formation of the level of internal prices signifi cantly affects the performance of each participant in the chain and the system as a whole.
The scientifi c novelty of the study is the deepening of the methodological base for describing the interaction of participants in the production and technological chain in the process of forming internal prices. The article presents the results of a comparative analysis of the application of two approaches to determining transfer prices – at the cost level and using the “cost plus” method. It has been established that the formation of internal prices between interdependent entities based on market mechanisms gives worse results for the parent company in the chain than at prices equal to costs.To study the tasks as a formal tool for describing the functioning of the system, matrix modeling based on the methodology of intersectoral balance (MOB) was used, economic and mathematical models were proposed that include supply and demand conditions in determining domestic prices. The results of the study contribute to an understanding of the optimal internal pricing policy of a company with horizontal and vertical links.