A game-theoretic approach to the division of profits from economic land development

The present paper analyzes a very simple class of land-development games in which m developers individually seek to rent k contiguous land units from a set of n contiguous landowners. A notion of ‘admissible allocations’ is introduced to uniquely identify the set of ‘positive-profit participants’. Due to the contiguity of land, some land rents are seen to be positive even though the ‘bid rent’ for the land is zero.