Marginal Cost Pricing and Eminent Domain

Plassmann, Florenz; Tideman, T. Nicolaus

doi:10.2139/ssrn.1911278

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Marginal Cost Pricing and Eminent Domain

Foundations and Trends in Microeconomics, Vol. 7, 2011

95 Pages Posted: 17 Aug 2011 Last revised: 20 Mar 2012

See all articles by Florenz Plassmann

Florenz Plassmann

SUNY at Binghamton, Department of Economics

T. Nicolaus Tideman

Virginia Tech - Department of Economics

Date Written: August 17, 2011

Abstract

There are three separate strands of literature in economics that are related to the efficiency of takings under eminent domain: one addresses the question of optimal compensation for properties that are taken, a second inquires how governments might learn the values of properties that they consider taking, while a third analyzes solutions to the problem of land assembly. This essay reviews these strands of literature and argues that the principle of marginal cost pricing can be used as a unifying principle for integrating them.

Keywords: eminent domain, just compensation, takings, self-assessment, land assembly

JEL Classification: K11, R52

Suggested Citation: Suggested Citation

Plassmann, Florenz and Tideman, T. Nicolaus, Marginal Cost Pricing and Eminent Domain (August 17, 2011). Foundations and Trends in Microeconomics, Vol. 7, 2011, Available at SSRN: https://ssrn.com/abstract=1911278 or http://dx.doi.org/10.2139/ssrn.1911278