On Revenue and Welfare Dominance of Ad Valorem Taxes in Two-Sided Markets
AbstractA 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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Bibliographic InfoPaper provided by Department of Business and Management Science, Norwegian School of Economics in its series Discussion Papers with number 2009/9.
Length: 8 pages
Date of creation: 15 Sep 2009
Date of revision:
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Postal: NHH, Department of Business and Management Science, Helleveien 30, N-5045 Bergen, Norway
Phone: +47 55 95 92 93
Fax: +47 55 95 96 50
Web page: http://www.nhh.no/en/research-faculty/department-of-business-and-management-science.aspx
More information through EDIRC
Ad Valorem Taxes; Unit Taxes; Two-Sided Markets; Revenue-Dominance; Welfare-Dominance; Monopoly;
Other versions of this item:
- Kind, Hans Jarle & Koethenbuerger, Marko & Schjelderup, Guttorm, 2009. "On revenue and welfare dominance of ad valorem taxes in two-sided markets," Economics Letters, Elsevier, vol. 104(2), pages 86-88, August.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-11-14 (All new papers)
- NEP-MAC-2009-11-14 (Macroeconomics)
- NEP-NET-2009-11-14 (Network Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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IDEI Working Papers
152, Institut d'Économie Industrielle (IDEI), Toulouse.
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"The optimal structure of commodity taxation in a monopoly with tax avoidance or evasion,"
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CESifo Working Paper Series
3946, CESifo Group Munich.
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