Belleflamme, Paul
[UCL]
Toulemonde, Eric
[University of Namur]
We consider the effects of taxes for competing two-sided platforms.
We first detail how a platform passes a tax increase on its prices.
Adding price competition, we study next how the tax effects profits.
Because of the strategic implications of the cross-side external effects,
the tax increase may end up increasing the profit of the taxed platform
(lucky break) or, conversely, reducing it twice (double jeopardy).
Bibliographic reference |
Belleflamme, Paul ; Toulemonde, Eric. Tax Incidence on Competing Two-Sided Platforms: Lucky Break or Double Jeopardy. (2016) |
Permanent URL |
http://hdl.handle.net/2078.1/173903 |