Well, generally the game-theoretic proposals are for some kind of direct compensation for impacts - developers pay the residents directly for new impositions like shadows or traffic. But this really throws the whole notion of "master planning" and "expert opinion" out the window (as it's now a transactional system) which is why people who think of themselves as expert city planners do not like it.
I can say that as it is, the process of development is more like consumer marketing: schedule lots of meetings and interviews that sell people on the idea of accepting development rather than giving them a stake in its success. It encourages confrontational deadlock, a buildup of pressure followed by earthquakes of change, as the developers and government gradually start colluding to strongarm residents when they refuse to budge.