@techreport{Kind2009Should,
abstract = {Empirical evidence suggests that people dislike ads in media products like TV programs. In such situations standard economic theory prescribes that the advertising volume can be optimally reduced by levying a tax on ads. However, making use of recent advances in the theory of Industrial Organization and two-sided markets we show that taxing ads may be counterproductive. In particular, we identify a number of situations in which ad-adverse consumers are negatively affected by the tax, and we even show that the tax may lead to higher ad volumes. This unorthodox reaction to a tax may arise when consumers significantly dislike ads, i.e. in situations where traditional arguments for corrective taxes are strongest.},
address = {M\"{u}nchen},
author = {Hans Jarle Kind and Marko K\"{o}thenb\"{u}rger and Guttorm Schjelderup},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {D4; D43; H21; H22; L13; 330; Two-sided markets; media market; pricing strategy; ad-tax; Rundfunkwerbung; Werbebeschr\"{a}nkung; Steuer; Steuerwirkung; Medien\"{o}konomik; Lieferanten-Kunden-Beziehung; Medienverhalten; Betriebliche Preispolitik; Werbewirtschaft; Theorie},
language = {eng},
number = {2589},
publisher = {CESifo},
title = {Should utility-reducing media advertising be taxed?},
type = {CESifo working paper},
url = {http://hdl.handle.net/10419/26634},
year = {2009}
}
