4.2K views · 22 reactions | The two contiguous parcels that make up...
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4.2K views · 22 reactions | The two contiguous parcels that make up...
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A developer wishes to purchase two contiguous parcels of land for the purpose of building a large factory. Since each parcel alone is too small for his factory, each parcel is only worth 30,000 to the developer. However, both parcels together are worth a combined100,000 to the developer, as both parcels permit him to erect the factory. Two contiguous parcels of land are owned independently by landowner 1 and landowner 2. Landowner 1's reservation price for her parcel is 35,000, while landowner 2
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