A theoretical analysis on two‐sided duopoly platforms and tax regimes

Sangita Poddar, Tanmoyee Banerjee (Chatterjee) and Swapnendu Banerjee (Bandyopadhyay)

International Journal of Economic Theory, 2024, vol. 20, issue 1, 88-119

Abstract: We study the effects of three forms of taxation—a tax levied on the platform's revenue, an ad valorem tax on consumers' access fees and tax imposed on per‐transaction fees of sellers, in vertically differentiated two‐sided duopoly platforms with cross‐side network effects. The level of informative advertising which increases the probability of finding sellers by buyers, declines with taxes for each platform. Analytical comparison between tax regimes has been made. Additionally, for an increased degree of cross‐group externality, platforms raise the level of informative advertising irrespective of tax structures.

Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/ijet.12392

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:ijethy:v:20:y:2024:i:1:p:88-119

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1742-7355

Access Statistics for this article

International Journal of Economic Theory is currently edited by Kazuo Nishimura and Makoto Yano

More articles in International Journal of Economic Theory from The International Society for Economic Theory
Bibliographic data for series maintained by Wiley Content Delivery ().