Abstract: This paper shows by counterexamples that two computing formulas of optimal transfer pricing of intermediate product in^[1] do not always establish,under the conditions that the market demand function of final product and the production cost function of each intermediate product are known The necessary and sufficient conditions on two computing formulas establishment are obtained The policy dynamic consistency of the transfer pricing of intermediate product is analyzed We analyze further the transfer pricing problem by employing a dynamic game of complete information Finally,we discuss the transfer pricing of intermediate product under the conditions that two computing formulas which are mentioned above do not establish.

Key words: intermediate product, pricing, dynamic game, decision