If a pure profits tax (a percentage of the economic profits) is collected at the retail level,

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If a pure profits tax (a percentage of the economic profits)

is collected at the retail level, does a downstream monopoly's incentive to vertically integrate change?

Does the incentive change if the tax is collected at both upstream and downstream levels? Does a sales tax (at the retail level) affect the incentive to vertically integrate?

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Modern Industrial Organization

ISBN: 9780321011459

3rd Edition

Authors: Dennis W. Carlton, Jeffrey M. Perloff

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Question Posted: Nov 25, 2024 02:00 AM

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If a pure profits tax (a percentage of the economic profits) is collected at the retail level,

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Modern Industrial Organization

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