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Market power and voluntary land redistribution

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  • Lucie Ménager

    () (LEM - Laboratoire d'Économie Moderne - UP2 - Université Panthéon-Assas, EQUIPPE - Economie Quantitative, Intégration, Politiques Publiques et Econométrie - Université de Lille, Sciences et Technologies - Université de Lille, Sciences Humaines et Sociales - PRES Université Lille Nord de France - Université de Lille, Droit et Santé)

  • Christine Valente

    () (School of Economics, Finance and Management - LEM - Laboratoire d'Économie Moderne - UP2 - Université Panthéon-Assas)

Abstract

Inequality in land ownership remains a major issue in many developing countries, such as Brazil, Colombia, and South Africa. Donors advocate a new model of "willing-buyer/willing-seller\", market-led land redistribution, but actual redistribution has fallen short of expectations. Little effort has been made so far to formalize the obstacles to market-led land redistribution. In this paper, we show that oligopolistic owner-producers may resist land sales to poorer candidate-buyers not only because they have a lower willingness to pay for land but also because the entry of poorer entrants threatens tacit collusion.

Suggested Citation

  • Lucie Ménager & Christine Valente, 2011. "Market power and voluntary land redistribution," Working Papers hal-00867615, HAL.
  • Handle: RePEc:hal:wpaper:hal-00867615
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00867615
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    References listed on IDEAS

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    1. James W. Friedman, 1971. "A Non-cooperative Equilibrium for Supergames," Review of Economic Studies, Oxford University Press, vol. 38(1), pages 1-12.
    2. de Janvry, Alain & Sadoulet, Elisabeth, 1989. "A study in resistance to institutional change: The lost game of Latin American land reform," World Development, Elsevier, vol. 17(9), pages 1397-1407, September.
    3. Grossman, Herschel I, 1994. "Production, Appropriation, and Land Reform," American Economic Review, American Economic Association, vol. 84(3), pages 705-712, June.
    4. Horowitz, Andrew W, 1993. "Time Paths of Land Reform: A Theoretical Model of Reform Dynamics," American Economic Review, American Economic Association, vol. 83(4), pages 1003-1010, September.
    5. Townsend, R.F. & Kirsten, Johann F. & Vink, Nick, 1998. "Farm size, productivity and returns to scale in agriculture revisited: a case study of wine producers in South Africa," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 19(1-2), September.
    6. Ekaterina Krivonos & Marcelo Olarreaga, 2009. "Sugar Prices, Labor Income, and Poverty in Brazil," ECONOMIA JOURNAL, THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION - LACEA, vol. 0(Spring 20), pages 95-128, January.
    7. Cornia, Giovanni Andrea, 1985. "Farm size, land yields and the agricultural production function: An analysis for fifteen developing countries," World Development, Elsevier, vol. 13(4), pages 513-534, April.
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    Keywords

    Land reform; Oligopoly;

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