Journal Files A.A.S
SSP OUTLINE OF INTERDEPENDENCIES INHERENT IN LANDSCAPE VIEWS
|
S |
S |
P |
| Landscape Viewers
vs. Builders IUG &LEC |
Factor Ownership
is Key. Exchange Rights A. Farmers(Builders) own B. Viewers own |
Farmer derive income
from bids of builders. Builder who don't pay are excluded Viewer could derive income from builder if desired. Or their reservation price leads to rejection of bids. |
|
(If we add consideration of transaction costs here we can predict how the land will be used in A vs. B. | ||
| View Among Viewers
HEC |
Given that viewers do not own.
Problem is to organize their bid. 1. Market 2. Tax |
Free rider, Bid may fail.
"Frustrated would-be riders." Unwilling riders. |
|
MC=0 |
In the purchase decision:
1. Cost sharing? a. Land owner pays fixed cost and tourists MC b. Land owner + tourist hotel tax |
Income distr. Tourists get a break All pay AC |
| Pre-emptive | 2. Who chooses quality level
to be purchased? a. Voting rules favor those with preference for quality #1 b. Ditto for those with #2 |
Those with Pref. #1 win.
Those with Pref. #2 enjoy the quality #1, but can't get their preferred quality independently of the choices of others. |
\mc-lndsp
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