This paper analyzes the effects of specific and ad valorem taxation in an industry with downstream and upstream oligopoly. We find that in the short run, i.e. when the number of firms in both markets is exogenous, the results concerning tax incidence tend to be qualitatively similar to models where the upstream market is perfectly competitive. However, both overand undershifting are more pronou...

This note shows that in the Zodrow-Miesowski-Wilson model, the Nash equilibrium in capital taxes depends on whether these taxes are unit (as assumed in the literature) or ad valorem (as in reality). In a symmetric version of the model with Cobb-Douglas technology, public good provision is higher, and residents in both countries are better off, when countries compete in unit taxes.

This paper shows that the welfare dominance of ad valorem over unit taxes under imperfect competition, extends to the Dixit-Stiglitz framework with differentiated products, entry and love of variety. This contrasts against findings by Anderson et al. (J Public Econ, 2001) made in a similar framework, but under Bertrand competition.

It is well known that ad valorem taxes welfare-dominate specific taxes under monopoly. This paper demonstrates that the comparative welfare ranking of the two instruments reverses under monopsony. The relative performance of alternative tax forms is thus highly sensitive to whether the buyer or seller has market power.

We show that if a monopoly sector is imbedded in a general equilibrium framework and profits are taxed at one hundred percent, then unit (specific) taxation and ad valorem taxation are welfare-wise equivalent. This is contrary to all known claims. Journal of Economic Literature Classification Number:H21

Online shopping platforms (such as Amazon and eBay) or payment card networks (such as Visa and MasterCard) serve to facilitate transactions between buyers and sellers. While these platforms typically only incur small per-transaction costs, they often charge sellers a substantial proportional fee plus a small fixed transaction fee. In this paper, we investigate the implications of this use of ad...

a r t i c l e i n f o JEL classification: H32 L13 Q18 I18 Keywords: Excise tax Ad valorem tax Tax incidence Strategic pricing Differentiated products Soft drinks Because soft drink (SD) consumption is considered to be a contributor to the 'epidemic' of obesity, there is a growing interest in evaluating the impact on SD consumption of alternative tax policies. In this paper, we propose a methodo...

In this paper, we look at two research questions. First, can lower ad-valorem taxes, on the selling of news and advertising, conduce to prices in media sector? Second, taxes stimulate firms increase diversity content that they offer? The purpose work is give tax political guidelines policy makers for sector. This important a sector has seen reduction payment subscriptions by readers (due compet...