On the existence of Nash equilibria in an asymmetric tax competition game

B-Tier
Journal: Regional Science and Urban Economics
Year: 2011
Volume: 41
Issue: 5
Pages: 439-445

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In this methodological paper, we prove that the famous tax competition game introduced by Zodrow and Mieszkowski (1986) and Wildasin (1988) in which the capital is completely owned by foreigners possesses a Nash equilibrium even when the assumption of symmetric jurisdictions is dropped. The normality of both private and public goods is all that is needed concerning restrictions on preferences when a peculiar regime of taxation is ruled out. Moreover, we show that conditions about technology allowing for the existence of a Nash equilibrium are satisfied by most of the widely-used production functions.

Technical Details

RePEc Handle
repec:eee:regeco:v:41:y:2011:i:5:p:439-445
Journal Field
Urban
Author Count
2
Added to Database
2026-01-29