Inflexible tax policies promote lies, hindering monopolists from entry deterrence.
Tax policies can either help or hurt a big company's ability to keep competitors out. The study looked at two types of tax policies: flexible and inflexible. They found that inflexible policies can make it harder for the big company to hide information from potential competitors, which could stop them from keeping others out. So, inflexible tax policies might actually be a good thing in some cases.