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Analysing Agricultural Land Markets as Organisations: An Empirical Study in Poland

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  • Hurrelmann, Annette
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    Abstract

    In this paper agricultural land markets are regarded as organisations, which allows to take the effect of the social embeddedness of exchange into account. The markets-as organizations approach suggests that markets are governed by an internal "constitution" containing rules on dissemination of information, control procedures and sanctioning mechanisms that provide advantages to members. The design of the market constitution is believed to be strongly influenced by the constellation of actors and their characteristics. In order to investigate the validity of this assumption the study chooses a comparative approach that analyses the content of land market rules in settings with different actor constellations and tries to find out why they have been established in this way. Both qualitative and quantitative data collected in three village case studies and a survey in two structurally different regions of Poland is used. The results underline that the internal constitution of the organisation "land market" is designed to serve members' interests by decreasing transaction costs and protecting community welfare and also support the expectation that the rules differ according to actor constellations.

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    Bibliographic Info

    Paper provided by Humboldt University Berlin, Department of Agricultural Economics in its series Institutional Change in Agriculture and Natural Resources Discussion Papers with number 18840.

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    Date of creation: 2004
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    Handle: RePEc:ags:huiain:18840

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    Keywords: Land Economics/Use;

    References

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    1. Seiichi Fukui, 1997. "The Meaning of Kinship in Sharecropping Contracts," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 394-406.
    2. George J. Stigler, 1961. "The Economics of Information," Journal of Political Economy, University of Chicago Press, vol. 69, pages 213.
    3. Allen, Douglas W & Lueck, Dean, 1992. "The "Back Forty" on a Handshake: Specific Assets, Reputation, and the Structure of Farmland Contracts," Journal of Law, Economics and Organization, Oxford University Press, vol. 8(2), pages 366-76, April.
    4. Gregory M. Perry & Lindon J. Robison, 2001. "Evaluating the Influence of Personal Relationships on Land Sale Prices: A Case Study in Oregon," Land Economics, University of Wisconsin Press, vol. 77(3), pages 385-398.
    5. Bernstein, Lisa, 1992. "Opting Out of the Legal System: Extralegal Contractual Relations in the Diamond Industry," The Journal of Legal Studies, University of Chicago Press, vol. 21(1), pages 115-57, January.
    6. Sugden, Robert, 1989. "Spontaneous Order," Journal of Economic Perspectives, American Economic Association, vol. 3(4), pages 85-97, Fall.
    7. George A. Akerlof & Rachel E. Kranton, 2000. "Economics And Identity," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 715-753, August.
    8. Akerlof, George A, 1970. "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, MIT Press, vol. 84(3), pages 488-500, August.
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