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The seminal paper by Salant, Switzer and Reynolds (1983) showed that merger in a standard Cournot framework with linear demand and linear costs is not profitable unless a large majority of the firms are involved in the merger. However, many strategic aspects matter for firm competition such as...
Persistent link: https://www.econbiz.de/10002757958
firms compete in all-pay auctions with complete information, silent shareholdings introduce asymmetric externalities into the all-pay auction framework. If the strongest firm owns a large share in the second strongest firm, this may make the strongest firm abstain from bidding. As a consequence,...
Persistent link: https://www.econbiz.de/10002856729
, in line with economic theory, that firms with no market power are able to shift a high share of a tax burden on to …
Persistent link: https://www.econbiz.de/10003923092
A strictly risk-averse individual with an exogenous gross income in period one can acquire human capital in the same period and evade taxes. Period-two income rises with educational investments in period one and can also be hidden from tax authorities. It is shown that a greater tax...
Persistent link: https://www.econbiz.de/10009488897
competitive world. This paper demonstrates that a substitution of this kind can also increase expected output and welfare in a …
Persistent link: https://www.econbiz.de/10009010185
A tax buyout is a contract between tax authorities and a tax payer which reduces the marginal income tax rate in exchange for a lump-sum payment. While previous contributions have focussed on labour supply, we consider the interaction with tax evasion and show that a buyout can increase expected...
Persistent link: https://www.econbiz.de/10010237195
establishes that trade unions can have a welfare-enhancing role in a world with relative consumption effects. …
Persistent link: https://www.econbiz.de/10009764940
Traditionally, it has been argued that profit sharing can increase employment and welfare because it lowers marginal labour costs without reducing total cost or labour income. In this paper, we show that profit sharing can also represent a Pareto-improvement if labour supply is excessive due to...
Persistent link: https://www.econbiz.de/10009655171
Relative consumption effects or status concerns that feature jealousy (in the sense of Dupor and Liu, AER 2003) boost consumption expenditure. If consumption is financed by labour income, such status considerations increase labour supply and, hence, the tax base. A higher taxable income, in...
Persistent link: https://www.econbiz.de/10009691693
What is the strategic role of membership in an intergovernmental group with unanimity requirements if the group negotiates with an external player in a setting with incomplete information? Being in such a group has a strategic effect compared to negotiating as a stand-alone player and reduces...
Persistent link: https://www.econbiz.de/10009691706