Edgeworth's Taxation Paradox and the Nature of Demand and Supply Functions

@article{Hotelling1932EdgeworthsTP,
  title={Edgeworth's Taxation Paradox and the Nature of Demand and Supply Functions},
  author={Harold Hotelling},
  journal={Journal of Political Economy},
  year={1932},
  volume={40},
  pages={577 - 616}
}
  • H. Hotelling
  • Published 1 October 1932
  • Economics
  • Journal of Political Economy
That a tax imposed on the seller of a monopolized article may lead to an actual lowering of the price to the buyer has been shown by F. Y. Edgeworth.2 His example was of a railway supplying two classes of passenger service at different prices and, unhindered by governmental interference, setting its rates so as to make its own profit a maximum. When the company is compelled to pay a tax on each first-class ticket, it finds it profitable, in Edgeworth’s example, to reduce rates on both classes… 

A new version of Edgeworth’s taxation paradox

Edgeworth's taxation paradox states that a unit tax can decrease the market price of a good. This paper presents a new version of the paradox in which a tax reduces price--and increases industry

Another Chapter In The History Oframsey'S Optimal Feasible Taxation

Paul Samuelson proposed and practiced a program for the Whig history of economics. One such example is his account of Frank Ramsey’s contribution to optimal taxation in 1927. For him and mainly for

Computing Optimal Tolls in a Money Economy

A major economic fact of the last fifty years is the increasing importance of the state. In the case of the Canadian economy, the total government budget grew from 10 per cent to 46 per cent of gross

Tax Responses in Platform Industries Kind

Two-sided platform …rms serve distinct customer groups that are connected through interdependent demand, and include major businesses such as the media industry, banking, and the software industry. A

The Elasticity of Derived Net Supply and a Generalized Le Chatelier Principle

The Marshall (1920)-Hicks (1963) rules for the elasticity of derived demand for an input, which demonstrate how the price elasticity of demand for the input changes as the price elasticity of demand

Comparing the welfare effects of income and excise taxes in the presence of the other taxation paradox

This paper implements numerically a general equilibrium model in which all private producers are price makers and the government utilizes tax revenues to provide a public good. After deriving the

Wicksell on Edgeworth's Tax Paradox

It is well known that Wicksell's interest in mathematical economics, despite a somewhat ambivalent attitude towards it, continued almost until the time of his death.1 His mathematical discussion of

Prices and Deadweight Loss in Multi-Product Monopoly

This paper provides a thorough analysis of oligopolistic markets with positive demand-side network externalities and perfect compatibility. The minimal structure imposed on the model primitives is

Ticket Pricing1

Price discrimination among ticket service classes is analyzed when aggregate demand is known and individual preferences are private information. Serving customers in cheap second‐class seats limits
...