Document Type
Article
Publication Date
March 2015
Publication Title
Economics and Business Letters
Volume
4
Issue Number
1
First Page
30
Last Page
35
Abstract
This paper examines the output effect of an ad-valorem tax of undifferentiated oligopolistic firms in the Weber-Moses triangle. It shows that an increase in the ad-valorem tax will increase each firm’s output but may increase the number of firms and total output of firms if the inverse demand function is linear, concave or not too convex. This result is different from the well-known Tanaka’s result in non-spatial economy. It indicates that oligopolistic firm’s location decision has important influence on the output effect of the ad-valorem tax.
Recommended Citation
Shieh, Y.-N. (2015) A note on location and the output effect of ad-valorem taxes under free entry oligopoly. Economics and Business Letters, 4(1), 30-35. https://www.unioviedo.es/reunido/index.php/EBL/article/view/10407 DOI: 10.17811/ebl.4.1.2015.30-35
Creative Commons License
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Comments
©2015 Oviedo University Press. This article was published in Economics and Business Letters, volume 4, issue 1, 2015. It is also available at this link.
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