Konferenzbeitrag

Taxation and Market Power

We analyze the incidence and welfare effects of unit sales taxes in experimental monopoly and Bertrand markets. We find, in line with economic theory, that firms with no market power are able to shift a high share of a tax burden on to consumers, independent of whether buyers are automated or human players. In monopoly markets, a monopolist bears a large share of the burden of a tax increase. With human buyers, however, this share is smaller than with automated buyers as the presence of human buyers constrains the pricing behavior of a monopolist.

Language
Englisch

Bibliographic citation
Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Economic Consequences of Market Imperfections ; No. D15-V2

Classification
Wirtschaft
Taxation and Subsidies: Incidence
Monopoly; Monopolization Strategies
Oligopoly and Other Imperfect Markets
Subject
tax incidence
monopoly
Bertrand competition
experiment

Event
Geistige Schöpfung
(who)
Morath, Florian
Konrad, Kai A.
Müller, Wieland
Event
Veröffentlichung
(who)
Verein für Socialpolitik
(where)
Frankfurt a. M.
(when)
2010

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Konferenzbeitrag

Associated

  • Morath, Florian
  • Konrad, Kai A.
  • Müller, Wieland
  • Verein für Socialpolitik

Time of origin

  • 2010

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