RT Journal Article
SR Electronic
T1 Market Power in a GIS-Based Hedonic Price Model of Local Farmland Markets
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 573
OP 592
DO 10.3368/le.84.4.573
VO 84
IS 4
A1 Cotteleer, Geerte
A1 Gardebroek, Cornelis
A1 Luijt, Jan
YR 2008
UL http://le.uwpress.org/content/84/4/573.abstract
AB Buyers of farmland are usually interested in parcels for sale that are close to their own farms. With a limited number of parcels for sale, this may lead to market power in local farmland markets. The objective of this paper is to investigate whether market power affects farmland prices. Hedonic price models are adapted to allow for local market power of either sellers or buyers. A distinction is made between rural and urban farmland markets. The results provide evidence of market power effects in rural farmland markets. However, for farmland in urban areas, market prices are dominated by speculation effects. (JEL Q15)