Multi-Part Tariffs and Differentiated Commodity Taxation

Anna D'Annunzio, Mohammed Mardan and Antonio Russo

No 7852, CESifo Working Paper Series from CESifo

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.

Keywords: commodity taxation; multi-part tariffs; price discrimination (search for similar items in EconPapers)
JEL-codes: D42 D61 H21 (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-com and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.cesifo.org/DocDL/cesifo1_wp7852_0.pdf (application/pdf)

Related works:
Journal Article: Multi‐part tariffs and differentiated commodity taxation (2020)
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:ces:ceswps:_7852

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().