1. How organizations set transfer prices is covered in your readings. Given the case, "A Declaration of War: A Case of Competition in the Video Game Industry (PDF)," does VGE set its transfer prices (i.e., royalty payments) more on market prices, costs, or some negotiated price? Explain using details from the case. Then, list one other issue the CFO should consider with regard to the structure of the royalty payments from VGE to Digital Creations.