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Valuing Easements: Some Experimental Evidence

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Author Info
Thomas Kalbro () (Royal Institute of Technology SE 100 44 Stockholm, Sweden)
Hans Lind () (Royal Institute of Technology SE 100 44 Stockholm, Sweden)
Abstract

Trefzger and Munneke (1998) present a theoretical model, where the surplus that an easement gives rise to will be split equally between the parties. We provide experimental evidence from Sweden indicating that the split of the surplus depends on the context and what is judged to be reasonable principles of a fair distribution. The dominant estates got a significantly higher share of the surplus because they could start the bargaining with a bid that only included compensation for cost, whereas the servient estate could not find any principle that would give them the whole surplus. After these initial asymmetric bids, the parties usually met halfway.

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File URL: http://aux.zicklin.baruch.cuny.edu/jrer/papers/pdf/past/vol18n03/v18p491.pdf
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Publisher Info
Article provided by American Real Estate Society in its journal Journal of Real Estate Research.

Volume (Year): 18 (1999)
Issue (Month): 3 ()
Pages: 491-502
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Handle: RePEc:jre:issued:v:18:n:3:1999:p:491-502

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L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

References listed on IDEAS
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  1. Sefton, Martin & Yavas, Abdullah, 1996. "Threat to Regulate and Coordination Failures: Experimental Evidence," The Journal of Real Estate Finance and Economics, Springer, vol. 12(1), pages 97-115, January.
  2. Joseph W. Trefzger & Henry J. Munneke, 1998. "Valuing Easements: A Simple Bargaining Framework," Journal of Real Estate Research, American Real Estate Society, vol. 16(2), pages 127-138. [Downloadable!]
  3. Abdullah Yavas & Thomas J. Miceli & C.F. Sirmans, 2001. "An Experimental Analysis of the Impact of Intermediaries on the Outcome of Bargaining Games," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 29(2), pages 251-276. [Downloadable!] (restricted)
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