Working Paper
Efficiency Enhancing Taxation in Two-sided Markets
Hans Jarle Kind, Marko Köthenbürger, Guttorm Schjelderup
CESifo, Munich, 2008
CESifo Working Paper No. 2262
CESifo, Munich, 2008
CESifo Working Paper No. 2262
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.
CESifo Category
Public Finance
Public Finance
JEL Classification: D400,D430,H210,H220,L130