China - Behavioural Game Split: The Arm's Length Principle and Highly Integrated Enterprises
- X. (Xinyu) Chen
- International Transfer Pricing Journal, 2013 (Volume 20), No 5
- 28 August 2013
A highly integrated transaction is in essence a form of bilateral monopoly and cooperative game with complete information. The fundamental facts and circumstances of highly integrated enterprises can be used to restore the independent state of affiliated enterprises, and the “Behavioural Game Split” can reveal the arm's length price of corresponding affiliated enterprises.