Market power and voluntary land redistribution

Lucie Ménager () and Christine Valente
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Lucie Ménager: LEM - Laboratoire d'Économie Moderne - UP2 - Université Panthéon-Assas, EQUIPPE - Economie Quantitative, Intégration, Politiques Publiques et Econométrie - Université de Lille, Sciences et Technologies - Université de Lille, Sciences Humaines et Sociales - PRES Université Lille Nord de France - Université de Lille, Droit et Santé

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Abstract: Inequality in land ownership remains a major issue in many developing countries, such as Brazil, Colombia, and South Africa. Donors advocate a new model of "willing-buyer/willing-seller\", market-led land redistribution, but actual redistribution has fallen short of expectations. Little effort has been made so far to formalize the obstacles to market-led land redistribution. In this paper, we show that oligopolistic owner-producers may resist land sales to poorer candidate-buyers not only because they have a lower willingness to pay for land but also because the entry of poorer entrants threatens tacit collusion.

Keywords: Land reform; Oligopoly (search for similar items in EconPapers)
Date: 2011
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