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This paper highlights the potential for joint OECD (or non-OPEC) carbon taxes to reduce OPEC's monopoly rent and … theory, the primary purpose of a carbon tax is to internalize a global negative externality. A second benefit for individual … countries is that the revenue raised by carbon tax can be used to reduce other tax rates and so lower the deadweight loss of tax …
Persistent link: https://www.econbiz.de/10003872304
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presence of human buyers constrains the pricing behavior of a monopolist. -- tax incidence ; monopoly ; Bertrand competition …We analyze the incidence and welfare effects of unit sales taxes in experimental monopoly and Bertrand markets. We find …, 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
Partly motivated by the recent antitrust investigations concerning Google, we develop a leverage theory of tying in two-sided markets. We analyze incentives for a monopolist to tie its monopolized product with another product in a two-sided market. Tying provides a mechanism to circumvent the...
Persistent link: https://www.econbiz.de/10011536190
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In this paper we study the endogenous determination of monopoly price. Our proposed game of endogenous monopoly …-price setting extends the literature on monopoly-price, monopoly rent-seeking contests and monopoly rent-seeking rent …-avoidance contests by (i) determining the monopoly price such that it maximizes a composite utility function that depends on two …
Persistent link: https://www.econbiz.de/10011408927
This paper shows that a manufacturer may benefit from parallel trade. In addition to an intuitive condition about the effect of demand shocks, this occurs when competitive retailers must order inventories before they know the realization of demand and for products whose sale value drops at the...
Persistent link: https://www.econbiz.de/10003112697
profits. Monopsony power increases the tax incidence that falls on firms. This makes labor income taxes less (more) effective … in redistributing labor income (profits). The optimal tax schedule is less progressive. Monopsony power alleviates the …
Persistent link: https://www.econbiz.de/10012534827
We analyze oligopolistic third-degree price discrimination relative to uniform pricing when markets are always covered. Pricing equilibria are critically determined by supply-side features such as the number of firms and their marginal cost differences. It follows that each firm's Lerner index...
Persistent link: https://www.econbiz.de/10012390927