Spatial Pricing on Land Rental Markets
AbstractThis 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.
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Bibliographic InfoPaper provided by Agricultural and Applied Economics Association in its series 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington with number 125349.
Date of creation: 2012
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Industrial Organization; Land Economics/Use;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-07-08 (All new papers)
- NEP-GEO-2012-07-08 (Economic Geography)
- NEP-URE-2012-07-08 (Urban & Real Estate Economics)
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