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If an additional competitor reduces output per firm in a homogenous Cournot-oligopoly, market entry will be excessive …
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Firms are usually better informed than tax authorities about market conditions and the potential profits of competitors. They may try to exploit this situation by underreporting their own taxable profits. The tax authority could offset firms' informational advantage by adopting "smarter" audit...
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If an additional competitor reduces output per firm in a homogenous Cournot-oligopoly, market entry will be excessive …
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Using a Cournot oligopoly model with an endogenous number of firms and evasion of indirect taxes, this paper shows that …
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