Economic Analysis of Social Issues 1st Edition by Alan Grant

Exercise 9

A professional football franchise is trying to assemble a parcel of land to build a stadium. There are 150 houses on the land the franchise needs. In this case, ______.
A) Eminent domain can reduce transactions costs and make a pie-increasing stadium possible
B) Eminent domain can reduce the likelihood of holdouts and make a pie-increasing stadium possible
C) Both of the above
D) Eminent domain is not called for; the land can be acquired more efficiently through bargaining