The article explores how tax policies need to consider the impact of market structure on consumer choices. By combining income taxation with monopolistic competition, the researchers found that adjustments are needed to achieve the best social outcome. Failure to account for market structure can lead to a welfare loss. They suggest that a policy based solely on income taxation can be more efficient than one that includes commodity taxes. The study also shows that consumer preferences play a significant role in shaping policy outcomes when market structure is taken into account.