Abstract: The power of eminent domain is often considered to be the inherent power of the government and it is rarely questioned. There are two possible justifications for eminent domain. Either the government has a superior position to that of private owners, such as a feudal lord, or the power of eminent domain exists to prevent the problem of holdout, i.e. the problem of high transaction costs. This paper examines and contrasts the historical and economic approaches to eminent domain and shows the complementarity of these disciplines.
Authors: Pavol Minárik
Keywords: eminent domain, property in land, feudalism, holdout