Expropriation power in private dealings: Quota rule in collective sales

B-Tier
Journal: Games and Economic Behavior
Year: 2023
Volume: 141
Issue: C
Pages: 548-580

Authors (2)

Uyanik, Metin (not in RePEc) Yengin, Duygu (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Complementarity is common in land-assembly problems, such as a developer buying the entirety of apartment units to complete a development project. Holdout (delay or block of projects by sellers) is common in these problems under unanimity-rule. Motivated by the recent policy practices in strata-sales, we introduce a new bargaining model with quota-rule. We show that under quota-rule, there is no holdout when there are two sellers or players are sufficiently patient. No-holdout equilibrium is unique, efficient and yields immediate sale of all goods as outcome. When quota rule is used, efficient equilibrium is still obtained under alternative bargaining protocols and with multiple sellers. We also show that the no-holdout result is not due to the specific bargaining protocol.

Technical Details

RePEc Handle
repec:eee:gamebe:v:141:y:2023:i:c:p:548-580
Journal Field
Theory
Author Count
2
Added to Database
2026-01-29