Towards a Theory of 3D Property Rights. With an Application to Nordic Legislation.

Authors

• Peter Ekbäck

Keywords:

3D property rights, 3D property formation, institutional transition, transaction costs

Abstract

Division of real property is traditionally defined in two dimensions only, but in recent decades several countries have introduced possibilities of independent 3D property formation. This article investigates and analyses the economic principles underlying the introduction of 3D property formation, in relation to optional legal possibilities in the conventional property rights system. An overview of 3D property rights alternatives in the Nordic countries is presented, and some fundamental premises regarding 3D property formation are formulated. One principal feature of 3D property formation is to economise on transaction costs for vertical real property utilisation, in the presence of scale or scope diseconomies.