Specific and ad valorem taxation in asymmetric Cournot oligopolies

This paper compares ad valorem and specific taxes in asymmetric homogenous Cournot oligopolies with constant marginal costs. We show that for any give n level of industry output, ad valorem taxes are superior to specific taxes in terms of revenue raised. If the tax rates are sufficiently high, for an y given specific tax one can find an ad valorem tax that leads to greater t ax revenue, consumer surplus, and industry profits.