The regional specifity of structural change in agriculture: An assessment of the role of farmers’ strategic behaviour on the land market
Among the family-farms in western Germany, significant regional differences are observable. They exist not only with respect to present farm-structure but also with respect to patterns of structural change. In the present paper, the different farm-development-strategies that cause these regional patterns are explained economically. As a central cause for their stability in a competitive environment, the relatedness of agricultural production to the non-renewable factor land is identified. Moreover, the coordination of the different strategies, which results in regional clusters, is shown to evolve endogenously in a model of strategic interaction on the land-market. It is demonstrated that due to the existence of rents of the status quo and resulting non-linearity in farmers’ reaction-curves, coordination-failures and multiple equilibria are possible. The theoretically derived results confirm the notion that not only farmers’ decisions determine structural development but also the initial structural situation heavily influences upon farmers’ decisions. The interdependence between structure and behaviour is reinforced by the important role of expectation concerning competitors’ behaviour in strategic interaction, because these expectations are coined by experience.
|Date of creation:||Sep 2009|
|Contact details of provider:|| Postal: Philippstr. 13, 10115 Berlin|
Phone: +49 (0)30 2093 6305
Fax: +49 (0)30 2093 6497
Web page: http://www.agrar.hu-berlin.de/fakultaet/departments/daoe
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.:
- Sandri, Serena & Schade, Christian & Mußhoff, Oliver & Odening, Martin, 2010.
"Holding on for too long? An experimental study on inertia in entrepreneurs' and non-entrepreneurs' disinvestment choices,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 76(1), pages 30-44, October.
- Sandri, Serena & Schade, Christian & Musshoff, Oliver & Odening, Martin, 2010. "Holding on for too long? An experimental study on inertia in entrepreneurs’ and non-entrepreneurs’ disinvestment choices," Structural Change in Agriculture/Strukturwandel im Agrarsektor (SiAg) Working Papers 59518, Humboldt University Berlin, Department of Agricultural Economics.
- Serena Sandri & Christian Schade & Oliver Mußhoff & Martin Odening, 2010. "Holding on for too long? An experimental study on inertia in entrepreneurs' and non-entrepreneurs' disinvestment choices," Post-Print hal-00856602, HAL.
When requesting a correction, please mention this item's handle: RePEc:ags:huscpw:59522. 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.