EconPapers    
Economics at your fingertips  
 

Holdout and Eminent Domain in Land Acquisition

Indrāni Roy Chowdhury and Prabal Roy Chowdhury ()

Indian Economic Review, 2016, vol. 51, issue 1, 1-19

Abstract: This paper examines the welfare implications of imposing eminent domain laws in a multilateral dynamic bargaining framework with one buyer, and multiple land sellers. We establish that if the minimal level of compensation is set at the 'right' level then eminent domain laws can be helpful. To be precise if the buyer is a 'small' one, then eminent domain laws are not just efficiency improving, but also lead to a Pareto improvement.The issue is a nuanced one however. For one, if the buyer is 'large' one, then eminent domain would improve seller payoff, but will have no efficiency implications. For another, in case the bargaining process is transparent, such laws may affect the sellers differentially; while some may gain, others may be adversely affected.

Keywords: Eminent Domain; Holdout; Compensation; Multi-person Bargaining; Efficiency; Secret Offers; Public Offers. (search for similar items in EconPapers)
JEL-codes: C78 D23 D62 L14 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:dse:indecr:0108

Ordering information: This journal article can be ordered from
http://www.ierdse.org/

Access Statistics for this article

Indian Economic Review is currently edited by Pami Dua (Editor) & Ram Singh (Associate Editor) and Sunil Kanwar

More articles in Indian Economic Review from Department of Economics, Delhi School of Economics University of Delhi, Delhi 110 007. Contact information at EDIRC.
Bibliographic data for series maintained by Pami Dua ().

 
Page updated 2020-06-30
Handle: RePEc:dse:indecr:0108