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

Type/nr A08/08
Skrevet av Hans Jarle Kind, Marko Koethenbuerger and Guttorm Schjelderup
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 need not hold in two-sided markets.
Språk Skrevet på engelsk