Price dispersion in farmland markets: What is the role of asymmetric information?

Arbeitspapier

This article investigates the role played by informational cost in agricultural land markets to explain price dispersion. Based on a hedonic model under incomplete information, we build a two-tier stochastic frontier. By linking costs of being information deficient to agent characteristics such as degree of professionalism, we identify relative price effects of buyers and sellers related to search. We compile a comprehensive data set of more than 10,000 transactions in Saxony-Anhalt, Germany, between 2014 and 2017. We find institutional sellers to achieve the lowest losses resulting from information deficiency while tenant buyers can benefit from informational advantages. We conclude that Germany's policy-makers can do more to support market transparency.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: FORLand-Working Paper ; No. 11 (2019)

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Asymmetric and Private Information; Mechanism Design ; Search; Learning; Information and Knowledge; Communication; Belief; Unawareness ; Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment ; Renewable Resources and Conservation: Land
• Thema: farmland markets ; hedonic pricing ; information deficiency ; two-tier frontier

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Kahle, Christoph ; Seifert, Stefan ; Hüttel, Silke
• Ereignis: Veröffentlichung
• (wer): Humboldt-Universität zu Berlin, DFG Research Unit 2569 FORLand "Agricultural Land Markets - Efficiency and Regulation"
• (wo): Berlin
• (wann): 2019

Weitere Informationen

• DOI: doi:10.18452/20661
• Handle: http://hdl.handle.net/10419/213065
• Letzte Aktualisierung: 10.03.2025, 11:45 MEZ