Maart, Syster Christin; Musshoff, Oliver; Odening, Martin; … - European Association of Agricultural Economists - EAAE - 2011
Agrarian structures are often characterized by some kind of economic inertia. It is particularly puzzling why unprofitable farms persist over time instead of being sold. In this paper we analyze the exit decision of farmers using the real options approach. The validity of the real options theory...