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Strategical Behavior of Firms and Excise Tax Payment (Revenue Maximization, Profit Maximization, Love, Respect and Trust)

DOI: 10.5539/ijef.v4n3p164

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Abstract:

In this paper, we analyze the effect on price and quantity traded of a commodity of an excise tax payment under different conditions. First, we analyze the effect of the tax payment as in traditional analysis, where the firm considers tax as a “bad” to be avoided. Next, we propose a new approach for sharing the payment for the firm. Finally, we develop a new philosphical and psychological analysis wehere tax payment may be considered as a “good” to be happily provided by the firm rather than a “bad” that needs totally to be avoided.

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