This paper develops a general model of anticommons fragmentation in property. Using several related examples, we consider the equilibria obtained under different scenarios. The various illustrations are later utilized to develop a model of fragmented property. The model reveals that the private incentives of excluders do not capture the external effects of their individual decisions. Our model suggests that the results of underutilization of joint property increase monotonically in both (a) the extent of fragmentation and (b) the forgone synergies and complementarities between the property fragments. We explore some important implications for the institutional responses to issues of property fragmentation. (JEL: K 10, K 11, K 19, D 62, D 70).
|Original language||English (US)|
|Number of pages||20|
|Journal||Journal of Institutional and Theoretical Economics|
|State||Published - Dec 2002|