Cremer, Helmuth; Goulão, Catarina; Lozachmeur, Jean-Marie - 2019
We consider an unhealthy good, such as a sugar-sweetened beverage, the health damages of which are misperceived by consumers. The sugar content is endogenous. We first study the solution under "pseudo" perfect competition. In that case a simple Pigouvian tax levied per unit of output but...