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Experimental analysis of a land assembly mechanism
Journal of Behavioral and Experimental Economics ( IF 1.6 ) Pub Date : 2021-01-27 , DOI: 10.1016/j.socec.2021.101680
Rakesh Chaturvedi , Kiriti Kanjilal

Market mechanisms for land assembly problems suffer from a holdout problem and coercive legal solutions like eminent domain introduce new inefficiencies. A new mechanism that is not fully market-based but attempts price discovery is proposed, experimentally studied and is shown to improve efficiency. The mechanism is fully specified by two parameters - a percentile value of the empirical distribution of ask-prices that serves as a trading threshold for the buyer and a quantum of penalty to be applied to landowners who bid relatively very high. In a 2 × 2 treatment, it is found that reducing the trading threshold and increasing the penalty improves the efficiency performance.



中文翻译:

土地整理机制的实验分析

土地集会问题的市场机制遭受了拖延问题的困扰,强制性法律解决方案(如知名领域)带来了新的效率低下的问题。提出了一种新的机制,该机制并非完全基于市场,而是尝试发现价格,并进行了实验研究,结果表明可以提高效率。该机制由两个参数完全指定:要价的经验分布的百分位数值(作为买方的交易阈值)和要价相对较高的地主的罚款量。在2× 在图2的处理中,发现降低交易阈值并增加惩罚可以改善效率性能。

更新日期:2021-02-03
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