Politicians often frame sin taxes as sound sources of revenue that will improve consumer behavior. Economists point out that the first principle of tax policy is the value of consumer choice; consumers' purchasing decisions reflect their choices for pursuing their best interests. Taxes that make...

This paper argues that it cannot be taken for granted that any merger that raises consumer surplus also increases social welfare. We assume a Cournot model with homogeneous goods, linear demand, and constant marginal costs, to show that a merger can raise consumer surplus while harming social...