Economic Analysis of Social Issues 1st Edition by Alan Grant

Exercise 15

[Related to Application 11.1 on page 220] Andre is attempting to privately acquire a group of properties he needs for a big project. Stubborn Sally, who owns a lot at the edge of those properties, refuses to sell at a price that Andre believes represents fair market value. Andre is thinking about asking the city to use its power of eminent domain to compel Sally to sell. "Why might the use of eminent domain be more justifiable if Andre's big project is a racetrack than if his big project is an amusement park?