On revenue and welfare dominance of ad valorem taxes in two-sided markets
Working paper
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Date
2009-09Metadata
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- Discussion papers (FOR) [566]
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.
Publisher
Norwegian School of Economics and Business Administration. Department of Finance and Management ScienceSeries
Discussion paper2009:9