Abstract
Internal transfer of goods and services are frequent in many corporations. Prices and quantities are often negotiated – more or less freely – between transferring units. The basic question behind this study is wether the outcomes of such negotiations are affected by forms of communication, inter-unit dependencies and external environmental conditions. Eight experiments in the form of business games were performed. The results show that these factors do affect the outcome of transfer negotiations. The outcome provides the basis for hypotheses for future research and suggests rules of thumb to observe in practical transfer pricing.