Economic essays

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Monograph

Identifikator:: 1753623200

URN:: urn:nbn:de:zbw-retromon-136107

Document type:: Monograph

Title:: Economic essays

Place of publication:: New York

Publisher:: Macmillan

Year of publication:: 1927

Scope:: viii, 368 S.; Ill., graph. Darst.

Digitisation:: 2021

Collection:: Economics Books

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Document type:: Monograph

Structure type:: Chapter

Title:: Elasticity of supply as a determinant of distribution / Paul H. Douglas

Collection:: Economics Books

110 ECONOMIC ESSAYS IN HONOR OF JOHN BATES CLARK which would be below the point which the change in bargaining powers had immediately effected. Conversely, if the smaller and negatively inclined factor were to improve its position by becoming less negatively elastic or by shifting its whole supply curve to the left, then the attendant per- centage gain per unit which it secured would be greater than the loss per unit suffered by the rival and positive factor. Its supply would, therefore, tend to contract more rapidly as compared with the positive factor than would be the case were the factors to receive equal shares, for then the positive factor would decrease with equal rapidity. Consequently, the ultimate unit return to the negative factor would be greater than it would have been under the condition of equal shares. When the negative factor therefore takes the aggressive and is able to force up its unit return, it is aided if the positive factor originally receives a larger share of the total product, so that it will not contract as rapidly as it would otherwise do. Where the positive factor received a smaller share than the negative, then if the former raises its bargaining strength, the decrease in remuneration per unit of the negative factor will now be less than the increase in the return per unit for the positive factor. This will cause the quantity of the negative factor to increase less rapidly than under the assumption of equal shares and hence will decrease the amount of the gain per unit, which the positive factor will be able ultimately to secure. If the negative and larger factor, on the other hand, improves its bargaining position, it causes a greater percentage fall in the return per unit to the positive and smaller factor than the increase per unit which it is able to secure for itself. This means that the supply of the positive factor will be curtailed by a given advance in the bargaining power of the negative factor more than would be the case under the condition of equal shares. The negative factor would, therefore, as a result of its possessing a greater share of the total product, gain less than it would under equal sharing. When both factors are negative, then an increase in the bar- gaining power of the one with the greater initial share will cause the unit return of the other factor to fall more rapidly than

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