Price dispersion in thin farmland markets: What is the role of asymmetric information?

Christoph Kahle, Stefan Seifert and Silke Hüttel

No 296797, 8th EAAE PhD Workshop, June 10 – 12, 2019, Uppsala, Sweden from European Association of Agricultural Economists

Abstract: This paper investigates the role of information and search cost in the price formation in thin farmland markets. We adopt a hedonic pricing model under incomplete information to analyze a comprehensive data set with more than 10,000 transactions between 2014{2017 in the Eastern German state Saxony-Anhalt. Estimation employs a two-tiered stochastic frontier to capture deviations from the ecient price due to search costs asymmetrically distributed between buyers and sellers. Relating these costs to the degree of professionalism, we nd institutional sellers relying on public tenders to achieve the lowest losses from being information decient. For buyers, we nd informational advantages in particular for farmers that are also tenants, while non-tenant farmers have only advantages for large transactions.

Keywords: Land; Economics/Use (search for similar items in EconPapers)
Date: 2019-11-25
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Related works:
Working Paper: Price dispersion in thin farmland markets: What is the role of asymmetric information? (2019)
Working Paper: Price dispersion in thin farmland markets: What is the role of asymmetric information? (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaaph8:296797

DOI: 10.22004/ag.econ.296797

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