Pricing Agreements Research Articles

Perlindungan Hak Kekayaan Intelektual Dalam Hukum Persaingan Usaha: Perspektif Komisi Pengawas Persaingan Usaha

Intellectual Property Rights are exclusive rights the state grants to inventors or creators of their intellectual works. Competition Law and the role of the Business Competition Supervisory Commission are closely related in ensuring the protection of intellectual property rights in Indonesia to prevent a decline in competitiveness and investment climate, including potential activities that can harm consumers such as the circulation of counterfeit products, price instability, and maintaining Indonesia's image in the international arena. This paper aims to provide an overview of the Business Competition Supervisory Commission's important role in ensuring the protection of intellectual property rights within the framework of healthy business competition law in Indonesia. The research method used is a descriptive normative legal research type. The data collection technique used is a literature study. Secondary data is analyzed qualitatively, and conclusions are drawn using deductive logic. The results of the study show that regulations give the Business Competition Supervisory Commission the authority to take action against business actors who violate intellectual property rights, monopolistic practices, and unfair business competition, such as unfair pricing, production restrictions, and exclusive agreements. Thus, the Business Competition Supervisory Commission has an important role in ensuring the protection of intellectual property rights to create a healthy business competition climate.

Carbon governance or trade gaming: China's approach to addressing the EU's carbon border adjustment mechanism

The EU's Carbon Border Adjustment Mechanism (CBAM) poses a significant challenge for developing countries, especially China, a key player in the global market and a major carbon emitter. We use the GTAP-E model to evaluate CBAM's impact on China's economy and carbon reduction efforts, and propose two response strategies: carbon governance approaches and international trade gaming. Our findings show that CBAM may lead to a slight decrease of 0.003% in China's GDP and a 0.004% reduction in carbon emissions. It also generates ripple effects across the supply chain, notably affecting energy-intensive upstream industries. We find that the combination of carbon pricing and trade agreements is more effective than trade protection measures in minimizing economic losses from CBAM. This is achieved through mechanisms such as sharing carbon reduction costs and promoting decarbonization on both the supply and demand sides. Furthermore, improving carbon governance can enhance the green competitiveness of Chinese products. Going forward, China should maintain trade agreements with developing countries and enhance its carbon pricing mechanism to better align with global climate governance. Our study offers valuable policy insights for developing countries as they navigate the challenges posed by CBAM.

Enhancing the supply chain performance of Kayumas specialty coffee based on the SCOR-ANP approach

Introduction: Performance evaluation is essential in defining supply chain strategies because the firm can find out how the business processes in the supply chain are running and formulate strategic policies. Kayumas coffee is one of Indonesia’s specialty coffee with a unique aroma and flavor originating from Kayumas Village, Situbondo District, East Java. Kayumas coffee supply chain needs to be evaluated because of the lack of competitiveness with other specialty coffees. Strategies are needed to improve supply chain performance, improve product quality, and reduce costs. This study aims to configure the supply chain of Kayumas specialty coffee structure, evaluate its performance, and determine performance improvement strategies. Methods: This study uses descriptive analysis to configure the supply chain structure and flow. Analysis of supply chain performance based on Supply Chain Operation Reference (SCOR) model then weighted with Analytic Network Process (ANP). Performance improvement strategies were formulated by a discussion with experts and then weighted with ANP. Results: The research results show that the Kayumas specialty coffee supply chain comprises farmers, farmer groups, distributors or resellers, and consumers. There are 6 performance indicators (metrics) to measure performance: perfect order fulfillment, order fulfillment cycle time, flexibility, total supply chain management cost, cost of goods sold, and cash-to-cash cycle time. Performance measurement shows that Kayumas specialty coffee supply chain performance is in the inferior category. Conclusion: The strategy needed to improve supply chain performance by reducing cost is a partnership between supply chain members to reach a price agreement.

Non-arm's-length transactions, offshore financial centres, transfer pricing agreements and corporate cash holdings: Evidence from U.S. multinational corporations

This paper examines the association between non-arm's-length transactions, the existence of offshore financial centres, the existence of a transfer pricing agreement and corporate cash holdings for a large sample of U.S. multinational corporations over the 2006–2020 period. This study provides evidence that the existence of non-arm's-length transactions and of offshore financial centres increased the level of corporate cash holdings. In contrast, the existence of a transfer pricing agreement reduces the level of firm cash holdings. Overall, these results suggest that development of transfer pricing agreements with taxing authorities reduces multinational corporations' incentives and capacity to shift profits from higher- to lower-tax countries. These results remain robust to alternative specifications of cash holdings and endogeneity tests.

To what extent can prisoners dilemma in game theory be used in pricing strategy?

The title of this dissertation is to what extent can prisoners dilemma in game theory be used in pricing strategy? The purpose of the current study was to determine the extent of prisoner's dilemma used in pricing strategies, and how the prisoner's dilemma is used in pricing strategies. We first comprehensive analysis and evaluation of relevant literature about prisoners dilemma and common pricing strategies in literature review section. Then in discussion part, we use game theory models to describe and analyze the prisoner's dilemma in pricing strategies to predict various situations, make the optimal pricing strategies. In the dissertation, we found the effects of prisoners dilemma strategies on payoffs when pricing and explained why cooperative pricing agreements promote mutual benefits and long-term stability than non-cooperative pricing strategies. Then we analyzed the stability of cooperative pricing strategy, we also developed a pricing model based on Bayes theorem. Our research has important implications for economics, marketing and game theory. By applying prisoner's dilemma theory, firms can better understand the behavioral of competitors and enhance decision-making processes, optimize their pricing strategies, thereby enhancing market efficiency and profitability.

Analisis Akad Ijarah Tanah Kas Desa Bulusari Kecamatan Gempol Kabupaten Pasuruan dalam Perspektif Fikih Muamalah

Village cash land is land given to the village government to be managed as one of the village's original sources of income aimed at social interests in village development in improving community welfare. Various ways can be done by the village government to manage village cash land, one of which is through leases. The Bulusari Village Government utilizes village cash land by building shophouses in the Village Market which are then rented to the community. This study aims to determine whether the application of the Bulusari village cash land ijarah contract is in accordance with the principles of muamalah jurisprudence. This research uses field research methods with a qualitative approach because the author goes directly into the field to get information directly from informants. The results showed that the practice of leasing village cash land was in accordance with the principles of muamalah jurisprudence. Aspects such as clarity of the object of the contract (land), rental price agreement, and lease period have been well fulfilled in accordance with Islamic law. The application of ijarah contract on the cash land of Bulusari village helps improve the community's economy, so that the welfare of the community has increased.

Phase-by-phase pricing vs unified dual pricing: how suppliers collaborate with manufacturers in remanufacturing

In remanufacturing, suppliers and manufacturers often negotiate wholesale pricing contracts for un-remanufactured components, which are categorised into phase-by-phase (PP) and unified dual (DU) pricings based on the intertemporal market-pricing discrimination. This study investigates suppliers’ optimal pricing strategies and manufacturers’ optimal remanufacturing strategies for the two methods and identifies the strategies preferred by each party for remanufacturing cost savings. The results indicated that both the parties preferred a DU pricing agreement only when the cost savings were exceptionally high, which leads to the dilemma that manufacturers will have no financial incentive to invest in remanufacturing technologies, owing to suppliers’ complete domination over the supply chain instead. Therefore, a two-part tariff was applied to coordinate the supply chain and mitigate the challenges experienced by manufacturers caused by ‘bottleneck’ technologies controlled by the suppliers. Notably, when the cost-savings were not low, it was difficult for suppliers to avoid the intertemporal market-price discrimination induced by manufacturers because of a lack of sufficient order demand. Moreover, the remanufacturing technology threshold for manufacturers to turn on remanufacturing was lower for PP pricing. Finally, our study demonstrates that the growth in corporate profits and consumer surplus is often at the expense of environmental benefits.

THE MODERATING ROLES OF ENVIRONMENTAL, SOCIAL, AND GOVERNANCE DISCLOSURES ON COMPANY OWNERSHIP STRUCTURE AND TAX AVOIDANCE

Purpose: The aim of this study is to investigate the moderating roles of environmental, social, and governance disclosures in the relationship between company ownership structure and tax avoidance was investigated. The company ownership structure consist of family ownership, foreign ownership, and institutional ownership. Methodology/approach: Quantitative is the type of this research with using secondary data. Data collected from company reports that is annual reports, sustainability reports, and OSIRIS database. The data was analysed using hypothesis tests. Findings: The results of this study demonstrated that family ownership has a positive influence and foreign ownership has a negative influence, while institutional ownership has no influence on tax avoidance. Furthermore, this study revealed that environmental, social, and governance disclosures can weaken the influence of family ownership relationships, strengthen the influence of foreign ownership relationships, and prevent tax avoidance. In addition, environmental, social, and governance disclosures cannot moderating roles the influence of the relationship between institutional ownership and tax avoidance. Practical implications: The tax authority can improve the regulations about procedures for implementing transfer price agreements in special company relationships by considering environmental, social, and governance disclosures, so as to prevent an increase in tax avoidance. Originality/value: This study adds environmental, social, and governance disclosures to classify the inconsistency previous research which are thought to have a combined influence on the relationship between company ownership structure and tax avoidance.

Should the Internet of Things platform enter the smart device market?

PurposeThe Internet of Things (IoT) platform empowers the digital transformation of the manufacturing industry by providing information technology services. Simultaneously, it enters the market by offering smart products to consumers. In light of different service fee scenarios, this article explores the optimal decision-making for the platform. It investigates the pricing models and entry decisions of IoT platforms.Design/methodology/approachIn this study, we have formulated a game-theoretic model to scrutinize the influence of the IoT platform ventured into the smart device market on the pre-existing suppliers operating under subscription-based and usage-based pricing agreements.FindingsOur outcome shows that introducing an IoT platform’s smart device has a differential effect on manufacturers depending on their contract type. Notably, our research indicates that introducing the platform’s own smart device within the subscription-based model does not negatively impact the profitability of incumbent manufacturers, so long as there is a noticeable discrepancy in the quality of the smart devices. However, our findings within the usage-based model demonstrate that despite the variance in smart device quality differentiation, the platform’s resolution to launch their device and impose their pricing agreements adversely affects established manufacturers. Additionally, we obtain valuable Intel regarding the platform’s entry strategies and contractual inclinations. We demonstrate that the platform is incentivized to present its smart device when reasonable entry costs remain. Furthermore, the platform prefers subscription-based contracts when the subscription fee is relatively high in non-platform entry and entry cases.Originality/valueThese findings hold significant practical implications for firms operating in an IoT-based supply chain.

Transfer Pricing and Activity Based Costing:

Activity based costing (ABC) is based simply on the premise that businesses must understand the factors that change each major activity and the costs of these activities, and how different activities add values to the firm related to the products in order to run the business effectively and efficiently. The role of transfer pricing policy is to allocate costs within the firm to determine the optimal product mix. The activity based costing approach justifies the transfer prices a multinational corporation uses to transfer unique company services among its divisions located in different countries. This article is an attempt to explain how this approach reduces the probability of costly tax audits and assists in obtaining an advanced pricing agreement. Moreover, this article contrasts the traditional and ABC approaches and shows how the approaches can significantly affect transfer pricing tax liability. Nevertheless, this article provides a glimpse of the potential of ABC in the development of an effective transfer pricing mechanism, one that lowers the risk of a transfer price audit and gives the multinational enterprise (MNE) the flexibility to adjust costs to compete successfully in the global market.

Agreement on customs value determination as an instrument of customs regulation

The article considers the tools of customs and tax regulation in the Russian Federation, in particular in the sphere of pricing for taxation purposes and control over the customs value of goods imported into the customs territory of the Eurasian Economic Union. Given the complexity of the process of reviewing draft pricing agreements, as well as the frequency of movement of different goods across the customs border by one supplier or the identity of the transported goods of several suppliers, it is assumed that one of the tools of customs regulation is a customs value agreement. Such agreements can simplify the procedure of moving goods across the customs border of bona fide participants of foreign economic relations. The topic under study requires further development and analysis of the current national legislation in order to form theoretical and legal approaches to such an instrument of customs regulation, including in the aspect of establishing, regulating and determining the procedure for exercising the powers of customs authorities when concluding agreements with participants in foreign economic activity. According to the author’s position, the development of draft agreements selected for the study and their basic conditions can condition the emergence of other tools of customs regulation, ensuring the penetration of some concepts and tools of private law in public-law relations.

MANAGING SUPPLY CHAIN IN CONTEXT OF TRANSFER PRICING

It is now very widely known that supply of good and services across the borders by the associated / related companies is subject to the high risk of having disputes with the taxation authorities for abuse of transfer pricing for their international operations which very often may result in litigations. Thus, managing the supply chain when it is related with transfer pricing is extremely important for the smooth conduct of business, This paper in this context, therefore, first explains the relevant concepts of supply chain operations between the associated companies with tax implications, transfer pricing, abuse of transfer pricing, Arm’s Length Pricing, Advance Pricing Agreement, Safe Harbour Rules and then explains how such risk of disputes and litigations may be minimized or even eliminated by adopting a suitable legitimate techniques as per the prescribed guidelines and laws of the national and international institutions enabling MNEs to supply tangible and intangibles to their associate companies without having any issues with the taxation authorities.

PENGARUH TRANSFER PRICING TERHADAP AGRESIVITAS PAJAK DI PERUSAHAAN MULTINASIONAL

Transfer pricing is a pricing method used in transactions between companies within the same group with the aim of optimizing global profits through favorable pricing agreements. This strategy is commonly used by multinational companies to reduce tax liabilities by transferring income to jurisdictions with lower tax rates, thereby potentially increasing tax aggressiveness. The investigation conducted in this study examines the correlation between transfer pricing and tax aggressiveness, focusing on PT Adaro Energy Tbk as a case study, which is a multinational energy company based in Indonesia. The main objective of this investigation is to assess transfer pricing in relation to the tax behavior of multinational companies. Using the Systematic Literature Review (SLR) methodology, this research involves compiling various journals accredited by SINTA. The findings lead to the conclusion that transfer pricing does not have a significant impact on the tax behavior of multinational companies. Consequently, the authors propose the introduction of additional variables to evaluate tax behavior in multinational companies. This discovery emphasizes the need for enhanced regulation and oversight of transfer pricing practices by tax authorities to ensure compliance and equity in the tax system.

Market Entry Agreements for Innovative Pharmaceuticals Subject to Indication Broadening: A Case Study for Pembrolizumab in The Netherlands

ObjectivesManaged entry agreements and especially financial-based agreements are commonly used in European countries for innovative cancer pharmaceuticals. These agreements facilitate access to innovative treatments while mitigating financial risks for payers. This study focuses on the confidential price agreement made by the Dutch government for the reimbursement of pembrolizumab, the implications of broadening indications on cost-effectiveness, and the viability or desirability of said agreement. MethodsWe selected 5 indications in which pembrolizumab was deemed effective and developed portioned survival models for each indication. Survival and progression-free survival data from the published trials were utilized to recreate individual patient data, and we extrapolated—using parametric models—to a time horizon of 30 years. Inputs for both quality of life and costs were derived from the available literature and were indexed. ResultsThe incremental cost-effectiveness ratios ranged between €35 313 and €322 349 per quality-adjusted life-year, depending on the indication. Only 1 indication fell under the €80 000 (or €100 000) cost-effectiveness threshold. When applying the average reported discount on intramural pharmaceuticals in The Netherlands, incremental cost-effectiveness ratios ranged between €20 881 and €252 934 per quality-adjusted life-year gained, and the €80 000 (or €100 000) threshold was met in 3 indications out of 5. ConclusionsOur results show that pembrolizumab could be cost-effective in some indications, depending on the confidential price agreement established. However, the possibility of reimbursing not cost-effective care when the price is anchored in 1 indication remains possible. Indication-based pricing could help align value and price for innovative pharmaceuticals that are subject to indication broadening.

Key Account Management as a Differentiator in Trade-offs: The Case of Universal Heater Industries

The case narrates a typical business-to-business scenario wherein the customer (Bodha Constructions) calls for a fresh tender for the water heater supply. Universal Heater Industries (UHI), the current vendor, has won the price agreement for three years in the past, and seemingly has done a terrific job. UHI is surprised by the turn of events on the fresh tender, as their previous price agreement gave them an entitlement to a 15% price hike after three years. The new development of a fresh tender with a minor specification change put UHI’s plans in a quandary. The case depicts the tactics played by a large customer in pushing a vendor to align to new expectations despite a pre-agreed price hike.

STRATEGIES FOR IMPROVING SUPPLY CHAIN PERFORMANCE OF KAYUMAS SPECIALTY COFFEE

Performance evaluation is essential in defining supply chain strategies because by taking measurements, companies can find out how the business processes in the supply chain are running and formulate strategic policies to improve supply chain performance. Specialty coffee is a premium coffee with a unique aroma and flavor originating from a specific region, and it is easy to trace its origin from the farm to the consumer. This study aims to evaluate the performance of the Kayumas specialty coffee supply chain using the SCOR-ANP method and determine performance improvement strategies using ANP analysis. The research results can be concluded that (1) Kayumas specialty coffee supply chain consists of farmers, farmer groups, distributors/resellers, and consumers, (2) the performance position of Kayumas specialty coffee is inferior, (3) the performance improvement strategy needed to improve product quality is a partnership between supply chain members to reach a price agreement.

Investigating the Market’s Behavior of Curly Red Chili in Bengkulu Indonesia Using Price Formation and Transmission Elasticity Model

Curly red chili is one of the strategic agricultural products in Indonesia, especially in Bengkulu, and its distribution process is an essential aspect. This process consists of market participants' behavior and price formation. This research aims to investigate the curly red chili market behavior and to analyze the price formation and price transmission elasticity in Bengkulu Province. Panel data were obtained from retailers and farmers during a month. Data were analyzed using qualitative descriptive analysis for market behavior, while linear regression was used for the factors affecting price formation and price transmission elasticity. The result of market behavior analysis indicates that collecting traders buy the chili from farmers, then sell it to the next level sellers without any treatment. If the farmers have no debt and price agreement, they negotiate the price with the traders. On the other hand, if the farmers have a loan and there is a price agreement, the price is determined by the moneylender. Furthermore, the chili price at retailers is formed by following the price change on the previous day, and it is also influenced by the price at previous traders. It can be concluded that the marketing system has a vertical effect and backward linkage between its elements. The chili price transmission elasticity is 0.675. This empirical result concluded that the rate of price change by 1 per cent at the consumer level would cause a price change of only 0.675 per cent in the trader stage. Thus, the market system is inefficient, and it is competing imperfectly.

Fiat v European Commission: Fiat and Luxembourg’s Great Fiscal Autonomy Victory Comes at a Great Cost to the Commission

The Court of Justice of the EU (CJEU) handed the European Commission a significant defeat in its objective to stop multinational enterprises from benefitting from illegal state aid, mainly through unilateral transfer pricing agreements. The CJEU corrected the Commission’s analysis and asserted that conferring a selective advantage from a state policy was only possible by comparing inconsistencies with the Member State’s legislation rather than a harsher EU-wide OECD arm’s length principle. This article will analyse the issues caused by the case’s outcome, such as parity and uncertainty in the Commission’s analysis for future cases. Additionally, the article will analyse the mostly unsuccessful use of the state aid provision by the Commission in its other cases and how the amendment of EU laws is needed to turn the tide in the Commission’s favour.

A Decade-Long Crusade against Transfer Pricing Rulings Turns into a Proposal for a Transfer Pricing Directive: A European Attempt to Introduce a Harmonized EU Arm’s Length Standard?

The recent European Commission proposal for a transfer pricing directive comes after years of attempts to claim the existence of illegal State aids allegedly granted by Member States to multinational enterprises (MNEs) that were deemed to have been provided through advance pricing agreements. However, the Court of Justice of the European Union has consistently denied the Commission’s assumptions and clarified that no autonomous arm’s length principle, different from that of the OECD, was identifiable under EU law. In this article, the author analyses the major transfer pricing cases scrutinized by the European Commission and their connection to the Commission’s attempt to introduce a European arm’s length standard by reverting to the directive procedure after having failed to prove the existence of such a standard over a ten-year-long judicial battle.

Access in all areas? a round up of developments in market access and health technology assessment: part 4.

In this latest update, we look at recent developments in market access including the pricing agreement of Libmeldy® by the Beneluxa Initiative, the financial impact of managed entry agreements in Italy and the restructuring of Agenzia Italiana del Farmaco (AIFA). We also highlight the collaboration between FINOSE and the New Expensive Drug (NED) section of the Nordic Pharmaceutical Forum.