The paper examines how country tax differences affect a multinational enterprise's choice to centralize or de … - here, as a strategic pre-commitment device and a tax manipulation instrument -, we show that (de-)centralized decisions are … more profitable when tax differentials are (small) large. …

economic theory prescribes that the advertising volume can be optimally reduced by levying a tax on ads. However, making use of … recent advances in the theory of Industrial Organization and two-sided markets we show that taxing ads may be … counterproductive. In particular, we identify a number of situations in which ad-adverse consumers are negatively affected by the tax …