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Abstract
This paper attempts to explain the perplexing tendency to multiple leasing by both landlords
and tenants in some countries. It shows that if the negotiation of share contracts involves significant
transaction costs and there is some uncertainty regarding the output on tenanted plots, a
risk-averse landlord maximizing expected utility will find it in his advantage to subdivide his land
among several tenants and also permit his tenant to lease land from other landlords.