Taugourdeau, Emmanuelle; Vidal, Jean-pierre - In: Economics Bulletin 34 (2014) 1, pp. 51-62
In this paper, we investigate the impact of leadership in a tax competition game. We show that leadership by a group of countries is pareto improving for each country (leaders and followers) compared to a Nash equilibrium outcome. In addition, a coalition of leaders is also pareto improving and...