Professors Miceli and Segerson Cited in The Economist

micelisegersonAn article on land assembly in developing countries published in the May 2nd-8th 2015 edition of The Economist cited a paper by economics professors Thomas Miceli and Kathleen Segerson. The article discusses problems developing countries face in assembling land for large-scale economic development projects.

The author writes, “A theoretical model set out in a paper published in 2011 by Thomas Miceli and Kathleen Segerson of the University of Connecticut shows that when a buyer has to negotiate in sequence with sellers of contiguous plots of land, the price of each successive sale will rise. Landowners know the project cannot proceed unless the buyer acquires all the plots he needs. The more he acquires, the greater the cost of abandoning the project. The ransom those yet to sell can demand increases accordingly.”

The article referred to is “Land Assembly and the Holdout Problem Under Sequential Bargaining,” which was published in the American Law and Economics Review, Vol. 14 (2012): 372-390.