In The Gridlock Economy: How Too Much Ownership Wrecks Markets, Stops Innovation, and Costs Lives, Michael Heller argues that
Private ownership usually creates wealth. But too much ownership has the opposite effect—it creates gridlock. Gridlock is a free market paradox. When too many people own pieces of one thing, cooperation breaks down, wealth disappears, and everybody loses.
As an example, Heller notes that only one new airport has been built in the United States since 1975. The reason, he claims, is the difficulty in assembling the land required. If one property owner to refuses to sell his property, the entire project can be sabotaged. He calls this the “tragedy of the anticommons”–
Where the tragedy of the commons describes what happens with overuse of a resource, the tragedy of the anticommons describes underuse of a resource. And what defines underuse of a resource? To Heller, underuse occurs when the “overall social welfare” isn’t optimized.
To overcome the tragedy of the anticommons, Heller proposes a number of options. When land is involved, he is in favor of using brute force. If a majority of property owners support a project or proposal, then all property owners must go along. The desires and judgment of any individual is irrelevant–the majority simply because it is the majority.
Heller’s proposal destroys property rights. The right to property means the right of use and disposal. To Heller, our freedom to use and dispose of our property as we choose should be subjugated to the desires of our neighbors.
Heller correctly notes many of the problems that result from government regulations. But his “solution” is more government controls. What he regards as a free market paradox is more truthfully the expected failure of the regulatory state.
As an example, Heller notes that many potential innovations in medicine are held up because of the number of patent holders involved. One way to overcome this through patent pooling–the various patents are assembled either through purchase or through a consortium of the patent holders. But this might run afoul of antitrust laws. “For biotech pooling to have any chance,” Heller writes, “Congress may need to create special antitrust rules.” Rather than repeal those laws, Heller wants Congress to tweak them.
Heller sees nothing wrong with government controlling the use of property. He just disagrees with how government is currently doing it.