Multiple Leasing under Cropshare Tenancy — A Note

This paper attempts to explain the perplexing tendency to multiple leasing by both landlords and tenants in some countries. It shows that if the negotiation of share contracts involves significant transaction costs and there is some uncertainty regarding the output on tenanted plots, a risk-averse landlord maximizing expected utility will find it in his advantage to subdivide his land among several tenants and also permit his tenant to lease land from other landlords.