Kind, Hans Jarle Koethenbuerger, Marko Schjelderup, Guttorm
Year of Publication:
CESifo working paper 2262
This paper examines the efficient provision of goods in two-sided markets and characterizes optimal specific and ad-valorem taxes. We show that (i) a monopoly may have too high output compared to the social optimum; (ii) output may be reduced by imposing negative value-added taxes (subsidy) or positive specific taxes.