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Mechanism design for land acquisition

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  • Soumendu Sarkar

    (TERI University)

Abstract

We consider the issue of designing Bayesian incentive-compatible, efficient, individually rational and balanced mechanisms for Land Acquisition. This is a problem of great practical importance in developing countries. Several sellers, each with one unit of land, are located at the nodes of a graph. Two sellers are contiguous if they are connected by an edge in the graph. The buyer realizes a positive value only if he can purchase plots that constitute a path of given length. Our main result is that there is a robust set of priors for which successful mechanisms exist when there are at least two distinct feasible sets of contiguous sellers. The analysis also identifies the role of critical sellers who lie on all such feasible sets.

Suggested Citation

  • Soumendu Sarkar, 2017. "Mechanism design for land acquisition," International Journal of Game Theory, Springer;Game Theory Society, vol. 46(3), pages 783-812, August.
    • Handle: RePEc:spr:jogath:v:46:y:2017:i:3:d:10.1007_s00182-016-0556-4
    DOI: 10.1007/s00182-016-0556-4
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    Cited by:

    1. Chaturvedi, Rakesh, 2023. "Cost of efficiency in trading perfect complements," Economics Letters, Elsevier, vol. 230(C).
    2. Alfredo Valencia-Toledo & Juan Vidal-Puga, 2020. "A sequential bargaining protocol for land rental arrangements," Review of Economic Design, Springer;Society for Economic Design, vol. 24(1), pages 65-99, June.
    3. Valencia-Toledo, Alfredo & Vidal-Puga, Juan, 2017. "Duality in land rental problems," MPRA Paper 80509, University Library of Munich, Germany.
    4. Rakesh Chaturvedi & Ashish Kumar Pandey, 2024. "Double auction for trading perfect complements," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 26(1), February.
    5. Alfredo Valencia-Toledo & Juan Vidal-Puga, 2020. "Reassignment-proof rules for land rental problems," International Journal of Game Theory, Springer;Game Theory Society, vol. 49(1), pages 173-193, March.
    6. Justin Dijk & Erik Ansink & Daan van Soest, 2017. "Buyouts and Agglomeration Bonuses in Wildlife Corridor Auctions," Tinbergen Institute Discussion Papers 17-036/VIII, Tinbergen Institute.
    7. Soumendu Sarkar & Dhritiman Gupta, 2023. "Bargaining for assembly," Theory and Decision, Springer, vol. 95(2), pages 229-254, August.
    8. Soumendu Sarkar, 2022. "Strategyproof and Budget Balanced Mechanisms for Assembly," Working papers 320, Centre for Development Economics, Delhi School of Economics.
    9. Soumendu Sarkar, 2022. "Optimal mechanism for land acquisition," Review of Economic Design, Springer;Society for Economic Design, vol. 26(1), pages 87-116, March.
    10. Gurbachan Singh, 2016. "Land Price, Bubbles and Permit Raj," Review of Market Integration, India Development Foundation, vol. 8(1-2), pages 1-33, April.
    11. Chaturvedi, Rakesh, 2020. "Fairness and partial coercion in land assembly," Games and Economic Behavior, Elsevier, vol. 120(C), pages 325-335.

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    More about this item

    Keywords

    Contiguity; Eminent domain; Holdout; Land acquisition; Mechanism design; Myerson–Satterthwaite impossibility;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design

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