THE PRICE OF LAND AND THE PROCESS OF EXPROPRIATION - A GAME-THEORETICANALYSIS OF THE DUTCH SITUATION

This paper applies a game theoretic model to situations in which the D utch government expropriates land from some farmers in order to create a new public project. The model is a version of a finite period barga ining model with asymmetric information and one-sided offers. It is sh own that the model can explain some casual observations as the fact th at usually, but not always, the government and the farmers settle by a greement.