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Please use this identifier to cite or link to this item: http://hdl.handle.net/11266/6653

Title: Tourism tax, tourism boom and privatization in a mixed oligopoly
Other Titles: 観光税, 観光ブームおよび公企業の民営化
Authors: Kawahara, Shinya
河原, 伸哉
Keywords: Tourism tax
Tourism boom
Imperfect competition
Mixed oligopoly
Issue Date: 28-Mar-2019
Publisher: 立正大学経済学会
Abstract: This paper investigates the welfare effect of a tourism boom and a tourism tax in the context of imperfect competition. In particular, we characterize the welfare effects of a tourism boom and the optimal tourism tax rate, in the case of a standard Cournot oligopoly and the case of a mixed oligopoly in which a public firm and private firms compete. While the optimal tourism tax rate for the host country is given by a specific level in the case of private oligopoly, it is given by an arbitrary level that satisfies the profit maximization condition for private firms in the case of mixed oligopoly. In the case of private oligopoly, the welfare effect of a tourism boom is positive as long as the tourism tax is given by a non-negative level, but in the case of mixed oligopoly, the effect can be negative when the tourism tax is set at a low level and the private (public) firm’s share of output is sufficiently small (large) relative to the entire market.
URI: http://hdl.handle.net/11266/6653
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