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Game analysis of incremental income allocation in the marketization of rural collectively-owned commercial construction land under fairness preference

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  • Zou, Yucheng
  • Yan, Lei
  • Zhang, Yanwei

Abstract

This study explains how fairness preferences affect the allocation of income based on the practices of rural collectively-owned commercial construction land (RCOCCL) entering the market in contemporary China. The theoretical model for RCOCCL's market income allocation is extended based on Fehr and Schmidt (1999), and a fairness preference model is developed for analysis. The study makes the following conclusions. First, the stakeholders are bounded rational people with fair preferences, making them eager to narrow the income gap between themselves and others. Second, the income to local governments should be increased. Third, the more willing farmers accept the allocation scheme, the higher the benefits. Overall, this study provides new perspectives on the fair allocation of income and references for subsequent research on rural land income allocation in other developing countries.

Suggested Citation

  • Zou, Yucheng & Yan, Lei & Zhang, Yanwei, 2023. "Game analysis of incremental income allocation in the marketization of rural collectively-owned commercial construction land under fairness preference," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 1-14.
    • Handle: RePEc:eee:streco:v:65:y:2023:i:c:p:1-14
    DOI: 10.1016/j.strueco.2023.02.001
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    References listed on IDEAS

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    1. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory of Fairness, Competition, and Cooperation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 817-868.
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    4. Mingyu Zhang & Qiuxiao Chen & Kewei Zhang & Dongye Yang, 2021. "Will Rural Collective-Owned Commercial Construction Land Marketization Impact Local Governments’ Interest Distribution? Evidence from Mainland China," Land, MDPI, vol. 10(2), pages 1-20, February.
    5. Kairong Hong & Yucheng Zou & Mingyuan Zhu & Yanwei Zhang, 2021. "A Game Analysis of Farmland Expropriation Conflict in China under Multi-Dimensional Preference: Cooperation or Resistance?," Land, MDPI, vol. 10(2), pages 1-29, January.
    6. Chao Zhou & Yunjuan Liang & Anthony Fuller, 2021. "Tracing Agricultural Land Transfer in China: Some Legal and Policy Issues," Land, MDPI, vol. 10(1), pages 1-16, January.
    7. Niemann, Paul & Shapiro, Perry, 2008. "Efficiency and fairness: Compensation for takings," International Review of Law and Economics, Elsevier, vol. 28(3), pages 157-165, September.
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    9. Zhang, Xianchun & Shen, Jianfa & Gao, Xiaoxue, 2021. "Towards a comprehensive understanding of intercity cooperation in China’s city-regionalization: A comparative study of Shenzhen-Hong Kong and Guangzhou-Foshan city groups," Land Use Policy, Elsevier, vol. 103(C).
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    12. Lei Yan & Xubin Lei & Kairong Hong & Hui Li & Mengyuan Chen, 2022. "Improving Farmer Willingness to Participate in the Transfer of Land Rights in Rural China: A Preference-Based Income Distribution Scheme," Land, MDPI, vol. 11(3), pages 1-22, March.
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    1. Cheng, Jian & Zhao, Jiangmeng & Dai, Yating & Li, Yan, 2024. "Land supply patterns and the Chinese low consumption puzzle," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 232-245.
    2. Xiang Li & Jiang Zhu & Tao Liu & Xiangdong Yin & Jiangchun Yao & Hao Jiang & Bing Bu & Jianlong Yan & Yixuan Li & Zhangcheng Chen, 2023. "Quota and Space Allocations of New Urban Land Supported by Urban Growth Simulations: A Case Study of Guangzhou City, China," Land, MDPI, vol. 12(6), pages 1-21, June.

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