The Value of Negotiating Cost-Based Transfer Prices

This paper analyzes the potential of one-step transfer prices based on either variable or full costs for coordinating decentralized production and quality-improving investment decisions. Transfer prices based on variable costs fail to induce investments on the upstream stage. In contrast, transfer prices based on full costs provide strong investment incentives for the upstream divisions. However, they fail to coordinate the investment decisions. We show that negotiations prevent such coordination failure. In particular, we find that the firm benefits from a higher degree of decentralization so that total profit increases in the number of parameters being subject to negotiations.

3-D Audio in Mobile Communication Devices: Methods for Mobile Head-Tracking

Future generations of mobile communication devices will serve more and more as multimedia platforms capable of reproducing high quality audio. In order to achieve a 3-D sound perception the reproduction quality of audio via headphones can be significantly increased by applying binaural technology. To be independent of individual head-related transfer functions (HRTFs) and to guarantee a good performance for all listeners, an adaptation of the synthesized sound field to the listener's head movements is required. In this article several methods of head-tracking for mobile communication devices are presented and compared. A system for testing the identified methods is set up and experiments are performed to evaluate the prosand cons of each method. The implementation of such a device in a 3-D audio system is described and applications making use of such a system are identified and discussed.