Fiscal Discrimination Between Consumer Groups: Tax Burden Distribution Under Price Discrimination
In this paper it is analysed, how, under price discrimination, the tax burden is shared between the distinct consumer groups. Unit and ad valorem taxes are compared, revealing an impossibility of fiscal discrimination with regard to price changes. Contrary to conventional tax incidence analysis, it is shown that quantities traded do matter. Relative market shares are decisive for the distribution of tax burdens thereby opening up an opportunity for fiscal discrimination in choosing tax types. This discriminatory potential is limited and not caused by price discrimination per se but rather due to monopolistic supply.
|Date of creation:||Jul 2007|
|Date of revision:|
|Contact details of provider:|| Postal: Hohenzollernstraße 1-3, 45128 Essen|
Web page: http://www.rwi-essen.de/
More information through EDIRC
|Order Information:||Web: http://www.rwi-essen.de/publikationen/|
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.:
- Charles Blackorby & Sushama Murty, 2010.
"Unit Versus Ad Valorem Taxes: The Private Ownership of Monopoly In General Equilibrium,"
1011, Exeter University, Department of Economics.
- Charles Blackorby & Sushama Murty, 2013. "Unit Versus Ad Valorem Taxes: The Private Ownership of Monopoly in General Equilibrium," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 15(4), pages 547-579, 08.
- Blackorby, Charles & Murty, Sushama, 2007. "Unit Versus Ad Valorem Taxes : The Private Ownership of Monopoly In General Equilibrium," The Warwick Economics Research Paper Series (TWERPS) 797, University of Warwick, Department of Economics.
- D. B. Suits & R. A. Musgrave, 1953. "Ad Valorem and Unit Taxes Compared," The Quarterly Journal of Economics, Oxford University Press, vol. 67(4), pages 598-604.
- Francis K. Cheung, 1998. "Excise Tax on a Non-Uniform Pricing Monopoly: Ad Valorem and Unit Taxes Compared," Canadian Journal of Economics, Canadian Economics Association, vol. 31(5), pages 1192-1203, November.
- Perloff, Jeffrey M. & Wu, Ximing, 2007. "Tax incidence varies across the price distribution," Economics Letters, Elsevier, vol. 96(1), pages 116-119, July.
- James R. Hines, Jr. & John C. Hlinko & Theodore J.F. Lubke, 1996.
"From Each According to His Surplus: Equi-Proportionate Sharing of Commodity Tax Burdens,"
NBER Technical Working Papers
0138, National Bureau of Economic Research, Inc.
- Hines, James Jr. & Hlinko, John C. & Lubke, Theodore J. F., 1995. "From each according to his surplus: Equi-proportionate sharing of commodity tax burdens," Journal of Public Economics, Elsevier, vol. 58(3), pages 417-428, November.
- Sofia Delipalla & Michael Keen, 1991.
"The Comparison Between Ad Valorem and Specific Taxation under Imperfect Competition,"
821, Queen's University, Department of Economics.
- Delipalla, Sofia & Keen, Michael, 1992. "The comparison between ad valorem and specific taxation under imperfect competition," Journal of Public Economics, Elsevier, vol. 49(3), pages 351-367, December.
- Blackorby, Charles & Murty, Sushama, 2006.
"Unit Versus Ad Valorem Taxes : Monopoly In General Equilibrium,"
The Warwick Economics Research Paper Series (TWERPS)
761, University of Warwick, Department of Economics.
- Blackorby, Charles & Murty, Sushama, 2007. "Unit versus ad valorem taxes: Monopoly in general equilibrium," Journal of Public Economics, Elsevier, vol. 91(3-4), pages 817-822, April.
- Gregory A. Trandel, 1999. "Producers Lose: The Relative Percentage Reductions in Surplus Due to an AD Valorem Commodity Tax," Public Finance Review, , vol. 27(1), pages 96-104, January.
- Seade, Jesus, 1980. "The stability of cournot revisited," Journal of Economic Theory, Elsevier, vol. 23(1), pages 15-27, August.
When requesting a correction, please mention this item's handle: RePEc:rwi:repape:0019. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sabine Weiler)
If references are entirely missing, you can add them using this form.