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Two-Part Technology Transfer Pricing-Based Revenue Sharing of Multi-Transferee |
WANG Ruo-Peng, TANG Xiao-Wo, MU Yin-Ping |
University of Electronic Science and Technology of China,Chengdu,China |
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Abstract The transfer pricing strategy for technical institutes was analyzed. It is proposed that the two-part transfer pricing with fixed fee plus revenue sharing can not only get the optimal profit for research institutes, but alleviate the capital burden which caused by other common technology transfer pricing methods. And the two-part transfer pricing can share the benefit and risk between transferee and research institute. General demand function was used and the general expression of the two-part technology transfer pricing was obtained. The trend of the revenue sharing rate, final products price and the profit of the institutes and transferees were analyzed under linear demand function by numerical example.
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Received: 14 April 2006
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