Roy Chowdhury, Prabal (2009): Land Acquisition: Fragmentation, Political Intervention and Holdout.
Download (191kB) | Preview
This paper provides a theory of holdout based on the landowners' inability to manage large sums of money and consequent lack of consumption smoothing in case of sale. We find that under some reasonable conditions fragmentation increases holdout and moreover, this happens if and only if large landowners are relatively more willing to sale. Turning to the effects of politicization, we find that voice coupled with collective bargaining increases efficiency provided fragmentation is severe. Further, whether there is political intervention or not depends on the political maturity of the landowners, i.e. if they already have voice or not.
|Item Type:||MPRA Paper|
|Original Title:||Land Acquisition: Fragmentation, Political Intervention and Holdout|
|Keywords:||Land acquisition; holdout; fragmentation; politics; voice; collective bargaining.|
|Subjects:||L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L14 - Transactional Relationships ; Contracts and Reputation ; Networks
D - Microeconomics > D2 - Production and Organizations > D23 - Organizational Behavior ; Transaction Costs ; Property Rights
C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C78 - Bargaining Theory ; Matching Theory
D - Microeconomics > D6 - Welfare Economics > D62 - Externalities
|Depositing User:||Prabal Roy Chowdhury|
|Date Deposited:||03. Dec 2009 05:44|
|Last Modified:||12. Feb 2013 17:07|
Asami Y. A game-theoretic approach to the division of profits from economic land development. Regional Science and Urban Economics 1988; 18; 233-246.
Banerjee AV, Bardhan P, Basu K, Chaudhury MD, Ghatak M, Guha AS, Majumdar M, Mookherjee D, Ray D. Beyond Nandigram: Industrialization in West Bengal. Economic and Political Weekly 2007, April 28, 1487-1489.
Basu M. Arcelor-Mittal in Jharkhand. Economic and Political Weekly 2008; November 29; 22-23.
Benson BL. The mythology of holdout as a justification for eminent domain and public provision of roads. The Independent Review 2005; 10; 165-194.
Binswanger HP, Deininger K, Feder G. Power, distortions, revolt and reform in agricultural land relations. In: Behram J, Srinivasn TN (Eds), Handbook of Development Economics, Volume IIIB. Elsevier Science B.V.; 1995.
Cai H. Delay in multilateral bargaining under complete information. Journal of Economics Theory 2000; 93; 260-276.
Cai H. Inefficient Markov perfect equilibria in multilateral bargaining. Economic Theory 2003; 22; 583-606.
Cernea M. Risks, safeguards and reconstruction: A model for polulation displacement and resettlement. Economic and Political Weekly 2000; October 7; 3659-3678.
Chandra NK. Tata motors in Singur: A step towards industrialization and pauperization. Economic and Political Weekly 2008; December 13; 36-51.
Coase R. The problem of social cost. Journal of Law and Economics 1960, 3; 1-44.
O'Donoghue T, Rabin M. 1999, Doing it now or later. American Economic Review 1999; 89; 103-124.
Eckart W. On the land assembly problem. Journal of Urban Economics 1985; 18; 364-378.
Fernandez W. Singur and the displacement scenario. Economic and Political Weekly 2007; January 20; 203-206.
Ghatak M, Mookherjee D. Transition to Industrialization and Compensation for Displaced Agents. Mimeo, 2009.
Ghatak M, Bannerji S. No way out of this plot. The Financial Express 2009; September 30; 2009. http://www.financialexpress.com/printer/news/522915/
Guha A. Peasant resistance in West Bengal a decade before Singur and Nandigram. Economic and Political Weekly 2007; September 15; 3706-3711.
Laibson D. Golden eggs and hyperbolic discounting. Quarterly Journal of Economics 1997; 112; 443-477.
Lewis A. Economic development with unlimited supplies of labour, Manchester School of Economic and Social Studies 1954; 22: 132-91.
Menezes F, Pitchford R. A model of landowner holdout. Economic Theory 2004; 24; 231-253.
Mookherjee D 1997. Informational rents and property rights in land. In: Roemer J (Ed), Property rights, incentive and welfare. New York; McMillan; 1997.
Panwar TS. Nailing the Himachal Pradesh government's lies. Economic and Political Weekly 2008; December 13; 14-15.
Parisi F. Entropy in property. American Journal of Comparative Law 2002; 50; 595-632.
Phelps ES, Pollack RA. 1968, On second best national saving and game-equilibrium growth. Review of Economic Studies 1968; 35; 185-199.
Roy Chowdhury P, Sengupta K. Transparency, complementarity and holdout. Mimeo, 2009. http://mpra.ub.uni-muenchen.de/17606/
Sarkar A. Development and displacement: Land acquisition in West Bengal. Economic and Political Weekly 2007; April 21; 1435-1442.
Shapiro C 2001. Navigating the Patent Thicket: Cross Licenses, Patent Pools, and Standard-setting. In: Jaffe A, Lerner J, Stern S (Eds), Innovation Policy and the Economy, Vol. I, Ch. 4. MIT Press; 2001.