Spatial Competition and Farm Tourism - A Hedonic Pricing Model
Changes in EU agricultural policies towards additional focus on rural development issues raise questions regarding the economic impact of local/spatial competition. Traditionally, farmers have typically been price takers in markets for major agricultural products. This is, however, not necessarily true in the case of local markets for “new enterprises”. This article examines local/and spatial competition for farm tourism services, specifically “Self catering” in Sweden. The results show that spatial dependences exist and have to be considered in the econometric estimation of the hedonic pricing model. Using spatial econometrics it is shown that the price is affected by the average price, the demand for and supply of lodging in the regional market. Notable is that the results indicate that local competition has a positive effect on the price while regional competition has a negative effect. Marketing channels used as well as size and ranking of the service were found to affect the price of lodging. Diversification does not seem to positively affect prices. The findings illustrate the potential importance of local competition for rural developments studies. It also raises questions concerning policies promoting diversification and multifunctionality as a way of revitalizing urban areas.
|Date of creation:||2008|
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
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.:
- Hema Swaminathan & Jill L. Findeis, 2004.
"Policy Intervention and Poverty in Rural America,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 86(5), pages 1289-1296.
- Swaminathan, Hema & Findeis, Jill L., 2004. "Policy Intervention And Poverty In Rural America," Working Papers 18914, Oregon State University, Rural Poverty Research Center (RPRC).
- Anat Tchetchik & Aliza Fleischer & Israel Finkelshtain, 2008. "Differentiation and Synergies in Rural Tourism: Estimation and Simulation of the Israeli Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 553-570.
- Brian Roe & Elena G. Irwin & Jeff S. Sharp, 2002. "Pigs in Space: Modeling the Spatial Structure of Hog Production in Traditional and Nontraditional Production Regions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(2), pages 259-278.
- Garth Holloway & Donald Lacombe & James P. LeSage, 2007. "Spatial Econometric Issues for Bio-Economic and Land-Use Modelling," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(3), pages 549-588, 09.
- Holloway, Garth J. & Lacombe, Donald J. & LeSage, James P., 2006. "Spatial Econometric Issues for Bio-Economic and Land-Use Modeling," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25525, International Association of Agricultural Economists.
- Philippe Le Goffe, 2000. "Hedonic Pricing of Agriculture and Forestry Externalities," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 15(4), pages 397-401, April. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:ags:aaea08:6156. 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: (AgEcon Search)
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.