This paper addresses the reduction of market failure under imperfect competition. It proposes a tax-scheme that provides firms with an incentive to forgo their market power: Firms optimize after‐tax p
This paper analyzes features of perfect taxation also known as optimal taxation when one or more private markets is imperfectly competitive. Governments with perfect information and access to lump-sum
This paper addresses the reduction of market failure under imperfect competition. It proposes a tax-scheme that provides firms with an incentive to forgo their market power: Firms optimize after‐tax p
