There is a growing interest in using the discrete choice approach to study oligopolistic competition under product differentiation, and a prominent discrete choic model is the multinomial logit. Here we analyze various aspects of the logit in this context. We first show that the predictions of...

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...

This paper analyzes the incidence of ad valorem and unit excise taxes under imperfect competition with differentiated products and price-setting (Bertrand) firms. Both taxes may be overshifted onto consumers, and a higher tax rate can increase short run firm profits (and hence the long run...