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

Christoph Kahle, Stefan Seifert and Silke Hüttel

No 292320, 59th Annual Conference, Braunschweig, Germany, September 25-27, 2019 from German Association of Agricultural Economists (GEWISOLA)

Abstract: This paper investigates the role of information and search cost in the price formation in farmland markets. Using a comprehensive data set with more than 10,000 transactions between 2014–2017 in one of the eastern German Federal States, we estimate a two-tier model to capture price effects induced by asymmetrically distributed search cost between buyers and sellers. By relating these costs to the degree of professionalism, we can identify relative price effects and institutional sellers to sell at the lowest cost of being information deficient. No price differences can be indentified by contrasting farmers and non-farmers.

Keywords: Land; Economics/Use (search for similar items in EconPapers)
Date: 2019-08-28
New Economics Papers: this item is included in nep-agr
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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:gewi19:292320

DOI: 10.22004/ag.econ.292320

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