search query: @indexterm taxation / total: 1872
reference: 521 / 1872
| Author: | Constantatos, C. Sartzetakis, E. |
| Title: | On commodity taxation in vertically differentiated markets |
| Journal: | International Journal of Industrial Organization
1999 : NOV, VOL. 17:8, p. 1203-1217 |
| Index terms: | INDUSTRIAL ORGANIZATION COMMODITIES TAXATION |
| Language: | eng |
| Abstract: | The authors examine the impact of commodity taxation on vertically differentiated product markets when entry is allowed. They show that an ad valorem tax may have a dramatic effect on market structure by indicing the entry of a large number of firms in what was previously a natural monopoly. The producers of high quality products reduce market share after an increase in their unit production cost, leaving more room for lower quality products. |
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