Abstract
This article presents the criteria used to screen compensation claims generated by the construction of a large hydroelectric dam on the Columbia River. It examines the issues that emerged as a result of the flawed negotiation procedure that had secured only vague commitments by the project developer. The case study illustrates the practical concerns that arise when applying microeconomic concepts to help resolve contentious issues. The article concludes with a discussion of how the context of the impact assessment and negotiation procedures can affect its outcome.

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