Ad valorem and per unit taxation in an oligopoly model

Grazzini, Lisa
(2000)

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  • Grazzini, Lisa
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Abstract
This paper compares the welfare effects of ad valorem and per unit commodity taxation, in a model of oligopolistic interaction. Our main result is that, when the number of consumers is sufficiently high, per unit taxes welfare dominate ad valorem taxes.
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Grazzini, L. (2000). Ad valorem and per unit taxation in an oligopoly model (CORE Discussion Papers 2000/54). https://hdl.handle.net/2078.5/128227