The Mistaken Improver Problem

Posted: 13 Aug 1998

See all articles by Thomas J. Miceli

Thomas J. Miceli

University of Connecticut - Department of Economics

C. F. Sirmans

Florida State University - Department of Risk Management, Insurance, Real Estate & Business Law

Abstract

The mistaken improver problem occurs when an individual improves a piece of land owned by another. This paper derives the condition under which a potential improver should invest in a costly survey to determine ownership prior to making irreversible investments. It then examines whether legal remedies available to owners and improvers can be structured to induce improvers to make the efficient survey decision. The paper concludes by showing that the efficient remedies do not create an incentive for improvers to make "intentional" mistakes in an effort to "bypass" the market.

JEL Classification: H41, R11

Suggested Citation

Miceli, Thomas J. and Sirmans, C. F., The Mistaken Improver Problem. Journal of Urban Economics, 1998. Available at SSRN: https://ssrn.com/abstract=114746

Thomas J. Miceli (Contact Author)

University of Connecticut - Department of Economics ( email )

365 Fairfield Way, U-1063
Storrs, CT 06269-1063
United States
860-486-5810 (Phone)
860-486-4463 (Fax)

C. F. Sirmans

Florida State University - Department of Risk Management, Insurance, Real Estate & Business Law ( email )

Tallahasse, FL 32306
United States
850 644-4076 (Phone)

HOME PAGE: http://www.cob.fsu.edu/rmi

Register to save articles to
your library

Register

Paper statistics

Abstract Views
669
PlumX Metrics