We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Multi‐part tariffs and differentiated commodity taxation.
- Authors
D'Annunzio, Anna; Mardan, Mohammed; Russo, Antonio
- Abstract
We study commodity taxation in markets where firms, such as Internet Service Providers, energy suppliers, and payment card platforms, adopt multi‐part tariffs. We show that ad valorem taxes can correct underprovision and hence increase welfare, provided the government applies differentiated tax rates to the usage and access parts of the tariff. We obtain this result in different settings, including vertically interlinked markets, markets where firms adopt menus of tariffs to screen consumers, and where they compete with multi‐part tariffs. Our results suggest that exempting these markets from taxation may be inefficient.
- Subjects
TAXATION; TARIFF; INTERNET service providers; COMMODITY exchanges; TAX rates
- Publication
RAND Journal of Economics (Wiley-Blackwell), 2020, Vol 51, Issue 3, p786
- ISSN
0741-6261
- Publication type
Article
- DOI
10.1111/1756-2171.12340