Haan, M. A.; Heijnen, P.; Schoonbeek, L.; Toolsema, L. A. - Center for Nonlinear Dynamics in Economics and Finance … - 2008
In the 16th century, foreign ships passing through the Sound had to pay ad valorem taxes, known as the Sound Dues. To give skippers an incentive to declare the true value of their cargo, the Danish Crown reserved the right to purchase it at the declared value. We show that it is an equilibrium...
