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Coordination and allocation on land markets under increasing scale economies and heterogeneous actors - An experimental study AgEcon
Balmann, Alfons; Kellermann, Konrad; Larsen, Karin; Sandri, Serena; Schade, Christian.
Economies of scale and scope are often not exploited in Western agriculture. A general reason is probably that various types of transaction costs limit coordination among farmers. A more specific explanation is that coordination on land markets or machinery cooperation is difficult to achieve when farmers are heterogeneous as some kind of price differentiation is necessary for a Pareto-superior solution. This paper investigates experimentally such a coordination game with heterogeneous agents using an example inspired by agricultural land markets. The experimental findings suggest that a Pareto-optimal solution may not be found when agents are heterogeneous. The findings provide evidence for market failures and cooperation deficits as reasons for...
Tipo: Conference Paper or Presentation Palavras-chave: Land Markets; Coordination and Allocation; Experimental Economics; Agricultural and Food Policy; Farm Management; Land Economics/Use.
Ano: 2010 URL: http://purl.umn.edu/61093
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