| Leslie J. Reinhorn, University of Birmingham |
| Optimal Taxation with Cournot Oligopoly |
| Session: C-12-14 Wednesday 16 August 2000 by Reinhorn, Leslie J. |
| This paper studies optimal linear taxation in a static model with Cournot oligopolists. 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, a lower elasticity of demand may result in a lower optimal tax rate, unlike the perfectly competitive case. |