Multi‐part tariffs and differentiated commodity taxation

Anna D'Annunzio, Mohammed Mardan and Antonio Russo

RAND Journal of Economics, 2020, vol. 51, issue 3, 786-804

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.

Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://doi.org/10.1111/1756-2171.12340

Related works:
Working Paper: Multi-Part Tariffs and Differentiated Commodity Taxation (2019)
Working Paper: Multi-part Tariffs and Differentiated Commodity Taxation (2019)
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:randje:v:51:y:2020:i:3:p:786-804

Ordering information: This journal article can be ordered from
http://www.blackwell ... al.asp?ref=0741-6261

Access Statistics for this article

RAND Journal of Economics is currently edited by James Hosek

More articles in RAND Journal of Economics from RAND Corporation Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().