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The New Institutional Economic Approach to Land Development Game: Integrating Transaction Cost and Efficient Institutional Framework in Synergic Urban Land Use-Transport Development Model
Das, A.; Roy, S. The New Institutional Economic Approach to Land Development Game: Integrating Transaction Cost and Efficient Institutional Framework in Synergic Urban Land Use-Transport Development Model. Heliyon, 2023, 9, e12793. https://doi.org/10.1016/j.heliyon.2022.e12793.
Das, A.; Roy, S. The New Institutional Economic Approach to Land Development Game: Integrating Transaction Cost and Efficient Institutional Framework in Synergic Urban Land Use-Transport Development Model. Heliyon, 2023, 9, e12793. https://doi.org/10.1016/j.heliyon.2022.e12793.
Das, A.; Roy, S. The New Institutional Economic Approach to Land Development Game: Integrating Transaction Cost and Efficient Institutional Framework in Synergic Urban Land Use-Transport Development Model. Heliyon, 2023, 9, e12793. https://doi.org/10.1016/j.heliyon.2022.e12793.
Das, A.; Roy, S. The New Institutional Economic Approach to Land Development Game: Integrating Transaction Cost and Efficient Institutional Framework in Synergic Urban Land Use-Transport Development Model. Heliyon, 2023, 9, e12793. https://doi.org/10.1016/j.heliyon.2022.e12793.
Abstract
Land and property development process include a series of multifaceted activities ranging from purchasing to converting it for development purposes and everything in between. The process itself encompasses multiple stakeholders, drivers, and contributions from diversified public and private actors and transaction cost arises out of their complex interaction. Transaction costs incurred during any kind of human interactions (i.e. transactions). Every actor involved in the process wishes to maximize his achievement under various constraints and hence institutional arrangement (i.e. set of humanly devised rules to administer the constraints) is necessary for efficient management of the development process. Therefore, to devise an optimum outcome out of economic and social transactions in the property development process, cooperative and competitive relationships between individuals should be understood from a broader socio-political and governance structure. In this research, it is critically argued that land and property development process should implicate a multifaceted set of formal and informal rules or institutional arrangement to govern the intrinsic interaction, action and thereby reducing the related transaction cost. The argument is further reproachfully evaluated and implicated in the urban development process through the myopic lens of Transit-oriented development (TOD) pathway. A vigilant combination of descriptive and explanatory research approach is adopted to analyze the connection between theory and practice.
Keywords
Transit-oriented development (TOD); Transaction cost; Property development process; Institutional Arrangement; Land Value Capture.
Subject
Business, Economics and Management, Accounting and Taxation
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
