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| Valuing Easements: Some Experimental
Evidence Author: Thomas Kalbro and Hans Lind Start Page: 491 Abstract: Trefzger and Munneke
(1998) present a theoretical model, where the surplus that an easement gives rise to will
be split equally between the parties. We provide experimental evidence from Sweden
indicating that the split of the surplus depends on the context and what is judged to be
reasonable principles of a fair distribution. The dominant estates got a significantly
higher share of the surplus because they could start the bargaining with a bid that only
included compensation for cost, whereas the servient estate could not find any principle
that would give them the whole surplus. After these initial asymmetric bids, the parties
usually met halfway. |
