Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/19099
Authors: 
Kind, Hans Jarle
Köthenbürger, Marko
Schjelderup, Guttorm
Year of Publication: 
2005
Series/Report no.: 
CESifo Working Paper 1635
Abstract: 
This paper shows that consumers may buy more of a taxed good if it is sold by a two-sided platform firm. Two-sided platform industries serve distinct customer groups that are connected through interdependent demand, and include major businesses such as the media industry (newspapers/magazines and advertisers), banking (cardholder and merchant), and the software industry (users and application developers). The paper compares ad-valorem and specific taxes and shows that they may have opposite effects on quantities sold, and that the ad-valorem tax - the most commonly used tax throughout the OECD - has effects on prices and quantities not previously recognized.
Subjects: 
two-sided markets
ad-valorem taxes
specific taxes
JEL: 
L13
H22
H21
D43
D4
Document Type: 
Working Paper

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