Detalle Publicación

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Examples of unit tax superiority for a price-discriminating monopolist

Título de la revista: INTERNATIONAL TAX AND PUBLIC FINANCE
ISSN: 0927-5940
Volumen: 23
Número: 1
Páginas: 158 - 167
Fecha de publicación: 2016
Resumen:
This paper compares the welfare effects of per-unit and ad valorem taxes in four pervasive price discrimination schemes: quantity discounts, two-part tariffs, bundling, and package size price discrimination. The paper shows by example that per-unit taxes may welfare dominate ad valorem tariffs in a market with a monopoly that maximizes profits by engaging in second-degree price discrimination.
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