Tax analysis in a limit pricing model

  1. Marcos, Félix
Revista:
Documentos de Trabajo (ICAE)

ISSN: 2341-2356

Any de publicació: 1993

Número: 4

Pàgines: 1-18

Tipus: Document de treball

DIALNET GOOGLE SCHOLAR lock_openDocta Complutense editor

Altres publicacions en: Documentos de Trabajo (ICAE)

Resum

This paper deals with taxation, profits of firms and welfare. More specifically it analyses the effect of a lump sum tax on a noncompetitive market with free entry. The main result is that there are relevant situations in which the tax increases the profits of the incumbent firms. Unfortunately this goes with a reduction in consumer suplus (and in social welfare measured by consumer surplus, plus profits of firms plus revenues of the Government). But a way is suggested and some examples given in which that problem can be overcome.

Fuente de los datos: Dialnet