--- Birgir Runolfsson <[EMAIL PROTECTED]> wrote: > there is no certainty that the player > will end up playing for the team that values his services the most. > He will be indifferent between playing for any team valuing him at > more than $200000.
Given a tax on economic rent of 90%, with income above $100,000 being economic rent, with a team that offers him $1 million, his net is 100,000+.1*900,000= $190,000. With a team that offers him $210,000, his net is 100,000 + .1*110,000 = 111,000. Why would he be indifferent between $190,000 and $111,000? Fred Foldvary ===== [EMAIL PROTECTED]
