Publication details for Dr Leslie J ReinhornReinhorn, L.J. (2005). Optimal taxation with Cournot oligopoly. B.E. Journal of Economic Analysis & Policy: Advances 5(1): 6.
- Publication type: Journal papers: academic
- ISSN/ISBN: 1538-0637, 1935-1682
- Keywords: Optimal taxation, Cournot oligopoly.
- View online: Online version
- Durham research online: DRO record
Author(s) from Durham
This paper studies optimal linear taxation in a general equilibrium model with Cournot oligopoly.
The main result is the following. With imperfect competition the tendency toward “inverse elasticities”
tax rules will be weakened and may even be reversed. That is, an upward sloping relationship
may exist between an industry’s optimal tax rate and its own-price elasticity of demand, unlike the
perfectly competitive case.
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