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Smith’s paradox of price and negotiation: Empirical evidence from India

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  • Sattwick Dey Biswas

    (National Law School of India University)

Abstract

Diamond-water paradox has enticed the human mind for generations. Adam Smith gave it a new twist in the Wealth of Nations that serves as the basis of all modern valuation theories. This paper goes back to the original writing of Smith to identify paradoxes and then empirical test in the context of land value. The review of original texts and empirical evidence suggests the existence of a third principle, i.e. “riches and poverty of those who demand”. This indication demands a re-evaluation of Smith’s paradox of value and has implication of modern science of valuation.

Suggested Citation

  • Sattwick Dey Biswas, 2021. "Smith’s paradox of price and negotiation: Empirical evidence from India," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 68(4), pages 465-484, December.
    • Handle: RePEc:spr:inrvec:v:68:y:2021:i:4:d:10.1007_s12232-021-00378-w
    DOI: 10.1007/s12232-021-00378-w
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    References listed on IDEAS

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    4. Ramona Bunkus & Insa Theesfeld, 2018. "Land Grabbing in Europe? Socio-Cultural Externalities of Large-Scale Land Acquisitions in East Germany," Land, MDPI, vol. 7(3), pages 1-21, August.
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    More about this item

    Keywords

    Paradox of price; Negotiation; Valuation; Land acquisition; Compensation;
    All these keywords.

    JEL classification:

    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • D46 - Microeconomics - - Market Structure, Pricing, and Design - - - Value Theory
    • P4 - Political Economy and Comparative Economic Systems - - Other Economic Systems
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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