The Cost of Curbing Externalities with Market Power: Alcohol Regulations and Tax Alternatives

Products with negative externalities are often subject to regulations that limit competition. The single-product case may suggest that it is irrelevant for aggregate welfare whether output is re-stricted via corrective taxes or limiting competition. However, when products are differentiated, curbing具有负外部性（negative externalities）的产品通常会受到限制竞争的规制约束。单产品情形下，通过矫正税（corrective taxes）限制产出，或是通过限制竞争来约束产出，二者对总福利（aggregate welfare）的影响似乎并无差异。然而，当产品存在差异化时，抑制