Resolving Mechanism for Extreme Conflicts of Land Expropriation Compensation from the Perspective of Multidimensional Preferences

Because the particularity of land ownership in China, conflicts often occur in the process of land expropriation. The landowners have multidimensional behavioral preferences such as self-interest, loss aversion and inequity aversion, which cause extreme conflicts about compensation and makes the land expropriation unsuccessfully. In this paper, a two-stage multidimensional preferences game model is established to analyze the different benefits of the landowners, and the optimal compensation standard which can make the landowners sign immediately is discussed. The conclusions show that the optimal compensation standard is influenced by loss aversion preference and reference points, but not by the compensation of others. Keywords : Behavioral preferences; Multidimensional preferences; Land expropriation; Extreme conflicts