The paper focuses on the signaling value of a tax when agents are less informed than the government on the effect of their consumption. The policy making process is analyzed as a game in which the government wants to influence consumers' behaviors through tax policy, consumers being rational and...

The paper focuses on the signaling value of a tax when agents are less informed than the government on the effect of their consumption. The policy making process is analyzed as a game in which the government wants to influence consumers' behaviors through tax policy, consumers being rational and...

We study a situation where the government influences consumers` behavior by providing both information and incentives. More generally, we propose a methodology for solving models of signl cum cheap talk. We develop the case of consumption choice in the presence of uncertainty nd external...

The paper focuses on the signaling value of a tax when agents are less informed on the effect of their consumption than the policy-maker. When he chooses the tax, the policy-maker optimizes both the incentive effect and the effect on beliefs. We show that optimal taxes under symmetric...

In many instances where public policy concerning externalities is considered, ensuring an adequate perception of the public is not less important than setting ideal taxes. We show however that public authorities are typically incited to deliver biased information (exaggeration or attenuation) to...