Outstanding in the Field: Evaluating Auction Markets for Farmland Using Multi-Agent Simulation
Land acquisition and ownership is an important part of modern agriculture in North America. Given the unique nature of farmland as a good, this paper develops a multi-agent simulation of farmland auction markets in a Canadian context. The model is used to generate data on land transactions between farm agents to determine if a particular auction design or type is better suited to farmland transactions. The simulation uses three different sealed-bid auctions, as well as an English auction. The auctions are compared on the basis of efficiency, stability, and perceived surplus. We find that the form of agent learning about land markets affects both sale price and the variance of sale prices in all of the studied auctions. The second-price-sealed-bid auction generates the most perceived surplus, most equitable share of surplus, and also decreases uncertainty in the common-value element of prices. But on a macroscopic level, it appears that auction choice does not influence market structure or evolution over time.
Volume (Year): 15 (2012)
Issue (Month): 1 ()
|Contact details of provider:|| |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David A. King & J. A. Sinden, 1994. "Price Formation in Farm Land Markets," Land Economics, University of Wisconsin Press, vol. 70(1), pages 38-52.
- Colwell, Peter F & Yavas, Abdullah, 1994. "The Demand for Agricultural Land and Strategic Bidding in Auctions," The Journal of Real Estate Finance and Economics, Springer, vol. 8(2), pages 137-149, March.
- Balmann, Alfons, 1997. "Farm-Based Modelling of Regional Structural Change: A Cellular Automata Approach," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 24(1), pages 85-108.
- Haixiao Huang & Gay Y. Miller & Bruce J. Sherrick & Miguel I. Gómez, 2006. "Factors Influencing Illinois Farmland Values," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 458-470.
When requesting a correction, please mention this item's handle: RePEc:jas:jasssj:2010-49-2. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Flaminio Squazzoni)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.