Abstract We look into technology transfer by an insider patentee in a spatial duopoly model under three types of licensing contracts—(i) two‐part tariff with fixed fee and per‐unit royalty, (ii) ad‐valorem royalty (iii) general three‐part fee, royalties. Under contracts, the licenser is better off contract but does than other contracts. In contrast to existing literature, all contracts may make...

This paper investigates a puzzle and possible policy concern: Why do platforms such as eBay and Visa that enable the trade of goods of different unobserved costs and valuations rely predominantly on linear ad-valorem fees, that is, fees that increase in proportion to the sale price of the trades that they enable? Under a broad class of demand functions, we show that a linear ad-valorem fee sche...

This paper compares the e¢ ciency implications of aggregate output equivalent unit versus advalorem tax regimes when monopolistically competitive …rms produce di¤erentiated products with either homogenous or heterogenous costs. The model allows for …rms to price at a variable markup over marginal cost. In line with most prior …ndings the superiority of ad-valorem tax continues to hold when …rms...

Services constitute a significant part of GDP and overall trade in modern economies, but little is known about the magnitude its obstacles. Great effort has been made to establish measures services frictions on Organization Economic Cooperation Development (OECD) World Bank. A customary way using these employ them log-linear regressions gauge their effect flows. This may be problematic extent t...

Protection is defined broadly as government action or inaction that discriminates in favor of home producers against foreign producers. Measurement of protection has two aspects: observing or inferring protection at the product level and appropriately aggregating the highly differentiated product level protection to manageable indexes of protection. Better practice in each aspect makes a very s...

BACKGROUND The distribution of cigarette prices has rarely been studied and compared under different tax structures. Descriptive evidence on price distributions by countries can shed light on opportunities for tax avoidance and brand switching under different tobacco tax structures, which could impact the effectiveness of increased taxation in reducing smoking. OBJECTIVE This paper aims to de...

Applying a framework of perfect competition under uncertainty, we contribute to the discussion of whether or not ad valorem taxes and specific taxes are equivalent. While this equivalence holds without price uncertainty, we show that ad valorem taxes and specific taxes are “almost never” equivalent in the presence of uncertainty if we demand equivalence to hold pathwise. Since we obtain this re...

This paper investigates the effect of economic integration on the ability of firms to maintain a collusive understanding about staying out of each other’s markets. The paper distinguishes among different types of trade costs: ad valorem, unit, fixed. It is shown that for a sufficient reduction of ad valorem trade costs, a cartel supported by collusion on either quantities or prices will be weak...

Japan’s dairy industry is under heavy governmental regulation. This has serious consequences; for instance, controls on the imports of butter leads to periodic butter shortages. The collection of raw milk from farmers is monopolized by agricultural cooperatives in the region, which blend the raw milk from many farmers and sell it to dairy processing firms. Therefore, there is no opportunity for...