A Tax in the Apple Market: Who Pays the Tax?
An experiment from the book Experiments with Economic Principles by Theodore C. Bergstrom, Marcus Giamattei, Humberto Llavador and John H. Miller. The experiment and warm-up exercises are located in the econ-class experiments folder within classEx,
This experiment introduces a per unit tax in the Apple Market, but with a richer distribution of types. It runs three sessions of the same market: without taxes, with an excise tax paid by sellers, and with an excise tax paid by buyers. It covers tax incidence and excess burden.