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The formation of offer prices in farmland markets: A hedonic price approach

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  • Temel, Tugrul

Abstract

This study develops a game-theoretic framework to examine the preservation and capitalization effects of government farmland preservation policies. More specifically, emphasis is given to the effects of such policies on the number and type of land buyers, the distribution of offer price, and the mean waiting period. The results suggest that, in the context of the agricultural zoning policy, the final impact on the reservation price and mean waiting period depends on the magnitude of changes in the number and spread of the type of buyers.

Suggested Citation

  • Temel, Tugrul, 2011. "The formation of offer prices in farmland markets: A hedonic price approach," MPRA Paper 31921, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:31921
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    References listed on IDEAS

    as
    1. Tavernier, Edmund M. & Li, Farong & Temel, Tugrul T., 1996. "Search Theory Risk Preference and Farmland Preservation," Agricultural and Resource Economics Review, Cambridge University Press, vol. 25(1), pages 38-45, April.
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    4. Tavernier, Edmund M. & Li, Farong, 1995. "Effectiveness of Use-value Assessment in Preserving Farmland: A Search-theoretic Approach," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 27(2), pages 626-635, December.
    5. Mark A. Satterthwaite & Steven R. Williams, 1989. "The Rate of Convergence to Efficiency in the Buyer's Bid Double Auction as the Market Becomes Large," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 56(4), pages 477-498.
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    More about this item

    Keywords

    hedonic price; Bayesian approach; farm land valuation; government farm policy.;
    All these keywords.

    JEL classification:

    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General

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