Tax incidence under imperfect competition: Comment

Philip Reny (), Simon J. Wilkie and Michael Williams ()

International Journal of Industrial Organization, 2012, vol. 30, issue 5, 399-402

Abstract: Delipalla and O'Donnell (2001) contains a formula for the incidence of specific and ad valorem taxes in a conjectural variation oligopoly model with potentially asymmetric firms. The formula is incorrect. We derive the correct formula and provide a discussion of the error and its implications for empirical studies of pass-through.

Keywords: Tax incidence; Market power; Conjectural variations; Conduct parameter (search for similar items in EconPapers)
JEL-codes: H22 L13 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:30:y:2012:i:5:p:399-402

DOI: 10.1016/j.ijindorg.2012.04.001

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