Affiliation:
1. Leibniz Institute of Agricultural Development in Transition Economies (IAMO), Halle (Saale), Germany
Abstract
Abstract
With the emergence of large, horizontally integrated farm enterprises especially in Eastern European countries, the question arises whether these agroholdings exercise market power in (local) land markets. Using a theoretical framework of spatial competition that accounts for the presence of multi-farm agroholdings, we derive equilibrium prices under alternative spatial competition settings. Based on the investigation of Ukrainian farms, we provide theoretical explanations and empirical support for farms affiliated with an agroholding possessing (ceteris paribus) more land and setting higher land rental prices compared to independent farms. The results indicate that agroholdings may act as price leaders in local land markets.
Funder
German Research Foundation
International Competence Center
Publisher
Oxford University Press (OUP)
Subject
Economics and Econometrics,Agricultural and Biological Sciences (miscellaneous)
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