The ”Law for Promotion of Private Participation in Public Infrastructure Projects” provides a mechanism for the private sectors to develop the land for any public infrastructure project in order to increase its self-liquidating ratio. The concept behind build-operate-transfer (BOT) projects in Taiwan, such as the Taiwan High-Speed Rail (HSR) and Taipei's subway, the mass rapid transit (MRT) system, is to recoup the cost of the infrastructure project through land development revenues. Indeed, the public tends to be most concerned with the revenues, which depend on the institution and scale of development. As an asymmetry of information exists between the public and private sectors, issues concerning authority and agency may arise. This paper attempts to explore the allocation efficiency of resources among the government, the private sector, and landowners in terms of the interactive effects of authority and agency. I find that, should the government expropriate more land in order to meet the private sector's demand for land development, the allocation of land resources will be less efficient.