Download This PaperEfficiency Enhancing Taxation in Two-Sided Markets
20 Pages Posted: 25 Mar 2008
Date Written: March 2008
Abstract
This paper examines the efficient provision of goods in two-sided markets and characterizes optimal specific and ad-valorem taxes. We show that (i) a monopoly may have too high output compared to the social optimum; (ii) output may be reduced by imposing negative value-added taxes (subsidy) or positive specific taxes.
JEL Classification: D4, D43, H21, H22, L13
Suggested Citation: Suggested Citation
Hans Jarle Kind
Norwegian School of Economics & Business Administration (NHH) ( email )
Helleveien 30
Bergen, NO-5045
Norway
+47 55 583 890 (Phone)
+47 55 583 901 (Fax)
CESifo (Center for Economic Studies and Ifo Institute)
Poschinger Str. 5
Munich, DE-81679
Germany
Norwegian School of Economics (NHH) - Department of Economics
Helleveien 30
N-5035 Bergen
Norway
CESifo (Center for Economic Studies and Ifo Institute)
Poschinger Str. 5
Munich, DE-81679
Germany
Guttorm Schjelderup
Norwegian School of Economics (NHH) - Department of Business and Management Science ( email )
Helleveien 30
Bergen, NO-5045
Norway