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This paper considers the optimal selling mechanism for complementary items.
When buyers are perfectly symmetric, the optimal procedure is to bundle the items
and run a standard auction. In general, ...
De Gustibus non est Taxandum: Heterogeneity in Preferences and Optimal Redistribution
Spending Policy Taxation Theory United States
2015/4/27
The prominent but unproven intuition that preference heterogeneity reduces redistribution in a standard optimal tax model is shown to hold under the plausible condition that the distribution of prefer...
We extend a model of wasteful state aid in Dewatripont and Seabright (2006, Journal of the European Economic Association 4, 513--522) by a supranational controlling authority. The model combines mora...