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On Revenue and Welfare Dominance of Ad Valorem Taxes in Two-Sided Markets

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Author Info
Kind, Hans Jarle () (Dept. of Economics, Norwegian School of Economics and Business Administration)
Koethenbuerger, Marko () (Department of Economics, University of Copenhagen)
Schjelderup, Guttorm () (Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration)
Abstract

A benchmark result in public economics is that it is possible to increase both tax revenue and welfare by making a monopoly subject to ad valorem taxes rather than unit taxes. We show that such revenue and welfare dominance does not hold in two-sided markets.

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Publisher Info
Paper provided by Department of Finance and Management Science, Norwegian School of Economics and Business Administration in its series Discussion Papers with number 2009/9.

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Length: 8 pages
Date of creation: 15 Sep 2009
Date of revision:
Handle: RePEc:hhs:nhhfms:2009_009

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Related research
Keywords: Ad Valorem Taxes; Unit Taxes; Two-Sided Markets; Revenue-Dominance; Welfare-Dominance; Monopoly;

Find related papers by JEL classification:
D40 - Microeconomics - - Market Structure and Pricing - - - General
H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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This page was last updated on 2009-11-26.


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