The Price of Land and the Process of Expropriation
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This paper applies a game theoretic model to situations in which the Dutch government expropriates land from some farmers in order to create a new public project. The model is a version of a finite period bargaining model with asymmetric information and one-sided offers. It is shown that the model can explain some casual observations as the fact that usually, but not always, the government and the farmers settle by agreement.
- price offer
- coase conjecture
- bargaining process
- monopoly power