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Fairness and partial coercion in land assembly

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  • Chaturvedi, Rakesh

Abstract

A holdout problem arises in a land assembly environment in which one buyer is interested in a large landmass characterized by fragmented ownership among many landowners. A simple holdout-resolving mechanism is obtained that asymptotically (as the number of landowners increase) solves a mechanism design problem with two novel criteria. One, a partial coercion constraint that respects property rights only in an ‘aggregate’ sense; and two, a fairness constraint that requires the terms of trade (per unit area) to be the same for every landowner. The mechanism is budget-balanced, semi-anonymous, weakly strategy-proof and non-coercive for the buyer while also being strategy-proof in the large for landowners.

Suggested Citation

  • Chaturvedi, Rakesh, 2020. "Fairness and partial coercion in land assembly," Games and Economic Behavior, Elsevier, vol. 120(C), pages 325-335.
  • Handle: RePEc:eee:gamebe:v:120:y:2020:i:c:p:325-335
    DOI: 10.1016/j.geb.2020.01.011
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    References listed on IDEAS

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    More about this item

    Keywords

    Land assembly; Mechanism design; Property rights; Eminent domain;

    JEL classification:

    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H13 - Public Economics - - Structure and Scope of Government - - - Economics of Eminent Domain; Expropriation; Nationalization
    • P48 - Economic Systems - - Other Economic Systems - - - Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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