Tax incidence in differentiated product oligopoly

• 成果类型: Article
• 署名作者: Anderson, SP; de Palma, A; Kreider, B
• 署名单位: University of Virginia; CY Cergy Paris Universite
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/S0047-2727(00)00079-7
• 发表日期: 2001
• 页码: 173-192
• 关键词: excise tax; unit tax; specific tax; ad valorem tax; imperfect competition; product differentiation; bertrand; oligopoly; tax incidence; discrete choice models

摘要

We analyze the incidence of ad valorem and unit excise taxes in an oligopolistic industry with differentiated products and price-setting (Bertrand) firms. Both taxes may be passed on to consumers by more than 100 percent, and an increase in the tax rate can increase short run firm profits (and hence the long run number of firms). We provide summary conditions for these effects to arise. The conditions depend on demand curvatures and are written in elasticity form. Surprisingly, the analysis largely corroborates Cournot results with homogeneous demand. (C) 2001 Elsevier Science B.V. All rights reserved.