Spatial Pricing on Land Rental Markets

Marten Graubner and Alfons Balmann ()

No 125349, 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington from Agricultural and Applied Economics Association

Abstract: This paper analyzes spatial competition on land rental markets. It contributes to the small body of literature that investigates the optimal spatial price policy under competition and extents previous work by considering economies of size. Because the consideration of increasing or decreasing returns of additional land and the endogenous choice of spatial pricing is analytically intractable, a computational economics approach is used to simulate spatial pricing in the presence of economies of size. This paper is a first step towards a spatial competition model of a land rental market and based on selected simulations it shows that price discrimination is likely to arise.

Keywords: Industrial Organization; Land Economics/Use (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-geo and nep-ure
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea12:125349

DOI: 10.22004/ag.econ.125349

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