Model of Hypothecated tax on Information goods
AbstractInformation or knowledge, which can be incorporated in tangible objects at the same time in an unlimited number of copies at different locations anywhere in the world, constitutes Intellectual Property (IP) of an information producer. Intellectual property rights (IPR) legislation was created to optimize social welfare and to promote production of information by granting producers a temporary monopoly in return for a disclosure of their works. However, current IPR regimes are over-protective in terms of monopoly that is granted to a producer but they are under-protective against piracy and unauthorized use. Nowadays, the main effort is made to secure information in order to forbid unauthorized use, and thus this approach creates high barriers for information diffusion. The aim of the current work is to look for alternative solution of the IPR problem which can be defined as: how to profit from production of information without reduction its natural non-excludability and transferability. One of the possible solutions of IPR problem could be introduction of hypothecated tax on information goods. A theoretical model which describes exchange and production of the information goods was developed in support of the suggested solution. The case when production of the information goods is subsidized from the tax proceeds is also compared with the case when the information goods are sold on the market for unlimited flat rate. It was found that under assumption of homogeneous wealth and cost distributions the both cases result in the same consumption levels and the same condition on production costs.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies in its series Working Papers IES with number 2012/14.
Date of creation: Jun 2012
Date of revision: Jun 2012
Information good; Intellectual property rights; Hypothecated tax;
Find related papers by JEL classification:
- O34 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
- O38 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Government Policy
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lenka Herrmannova).
If references are entirely missing, you can add them using this form.