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Effects Of Ad-Valorem Taxes On Location Decision Under Free Entry Cournot Oligopoly, Yeung-Nan Shieh
Effects Of Ad-Valorem Taxes On Location Decision Under Free Entry Cournot Oligopoly, Yeung-Nan Shieh
Yeung-Nan Shieh
This paper examines the impact of the ad-valorem commodity tax as a policy device on the location decision of undifferentiated oligopolistic firms with free entry. It shows that: (1) When the distance between the plant location and the output market is held constant, the optimum location for the oligopolistic firm would be independent of the ad-valorem tax if the production function is homothetic, and (2) when the distance between the plant location and the output market is a decision variable, the optimum location for the oligopolistic firm will move closer to the output market if the demand function is linear …
Effects Of Ad-Valorem Taxes On Location Decision Under Free Entry Cournot Oligopoly, Yeung-Nan Shieh
Effects Of Ad-Valorem Taxes On Location Decision Under Free Entry Cournot Oligopoly, Yeung-Nan Shieh
Faculty Publications
This paper examines the impact of the ad-valorem commodity tax as a policy device on the location decision of undifferentiated oligopolistic firms with free entry. It shows that: (1) When the distance between the plant location and the output market is held constant, the optimum location for the oligopolistic firm would be independent of the ad-valorem tax if the production function is homothetic, and (2) when the distance between the plant location and the output market is a decision variable, the optimum location for the oligopolistic firm will move closer to the output market if the demand function is linear …