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Efficiency enhancing taxation in two-sided markets

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Author Info
Kind, Hans Jarle
Koethenbuerger, Marko
Schjelderup, Guttorm

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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.

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File URL: http://www.sciencedirect.com/science/article/B6V76-4RHWP04-1/1/684a2e642bc0d1594c2e3ed2d91f949a
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Publisher Info
Article provided by Elsevier in its journal Journal of Public Economics.

Volume (Year): 92 (2008)
Issue (Month): 5-6 (June)
Pages: 1531-1539
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Handle: RePEc:eee:pubeco:v:92:y:2008:i:5-6:p:1531-1539

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Web page: http://www.elsevier.com/locate/inca/505578

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Jean-Charles Rochet Author-Email: rochet@cict.fr Author-Workplace-Name: IDEI, University of Toulouse & Jean Tirole Author-Email: tirole@cict.fr Author-Workplace-Name: IDEI, University of Toulouse, 2006. "Two-Sided Markets: A Progress Report," RAND Journal of Economics, The RAND Corporation, vol. 37(3), pages 645-667, Autumn.
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  2. Hans Jarle Kind & Marko Koethenbuerger & Guttorm Schjelderup, 2006. "Taxation in Two-Sided Markets," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
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    • Kind, Hans Jarle & Koethenbuerger, Marko & Schjelderup, Guttorm, 2007. "Taxation in Two-Sided Markets," Discussion Papers 2007/3, Department of Finance and Management Science, Norwegian School of Economics and Business Administration. [Downloadable!]
  3. ROCHET, Jean-Charles & TIROLE, Jean, 2003. "Platform Competition in Two-Sided Markets," IDEI Working Papers 152, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
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  4. Guesnerie Roger & Laffont Jean-jacques, 1978. "Taxing price makers," CEPREMAP Working Papers (Couverture Orange) 7806, CEPREMAP.
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  5. Simon P. Anderson, 2005. "Market Provision of Broadcasting: A Welfare Analysis," Review of Economic Studies, Blackwell Publishing, vol. 72(4), pages 947-972, October. [Downloadable!] (restricted)
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