Current tax law makes it difficult to enforce sales taxes on most Internet commerce and has generated considerable policy debate. In this paper we analyze the costs and benefits of enforcing such taxes including revenue losses, competition with retail, externalities, distribution, and compliance costs. The results suggest that the costs of not enforcing taxes are quite modest and will remain so...

A dynamic Bertrand-duopoly model where price leadership emerges in equilibrium is developed. In the equilibrium, a firm leads changes and its competitor always matches next period. The firms produce homogeneous product are identical except for information they possess about demand. market size follows two-state Markov process. Market realizations observed by one of but not other. Without explic...

Theoretical analyses of international environmental agreements (IEAs) have typically employed the concept of self-enforcing agreements to predict the number of parties to such an agreement. The term self-enforcing, however, is a bit misleading. The concept refers to the stability of cooperative agreements, not to enforcing these agreements once they are in place. Most analyses of IEAs simply ig...