The authors investigate the effect of information on users' participation decisions at a free-access congestible facility that is subject to unpredictable fluctuations in capacity and demand. With demand isoelastic in user cost and user cost isoelastic in the ratio of demand to capacity, optimal...

This paper considers the relative efficiency of ad valorem and unit taxes in imperfectly competitive markets. We provide a simple proof that ad valorem taxes are welfare-superior to unit taxes in the short run when production costs are identical across firms. The proof covers differentiated...