Economic Analysis of Social Issues 1st Edition by Alan Grant

Exercise 6

In 1901,Macy's.built its flagship store at Herald Square m New York City. Macy's acquired most of the land it needed by negotiating with several landowners but the owner of one small five-story building on the corner of 34th and Broadway refused to negotiate a reasonable price. (Eventually, Macy's simply built its nine-story department store around the building.) This is one example of _____.
A) The public goods problem
B) A holdout
C) Unjust compensation
D) High transactions costs