April 21, 2004

Hold out problem

This is what Walter Block has to say, although he doesn't use the term himself:

"It is true that owners of land generally thought worthless by other people would be able to ask otherwise exorbitant prices from a developer intent on building a straight road. Some of these land owners would demand high prices because of psychic attachment (eg the treasured old homestead); others solely because they knew that building plans called for their particular parcels, and they were determined to obtain the maximum income possible."

Patrick Crozier | Comments (0)