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The spatial distribution of production is a defining characteristic of agriculture, and the location choice in geographic space and the spatial pricing policies adopted by agricultural processing/packing firms are key determinants of the competitiveness and efficiency of agricultural product...
Persistent link: https://www.econbiz.de/10014000362
Agricultural economists have a long history of emphasizing and analyzing the spatial dimension of agricultural and food markets. Despite a rich body of literature and important contributions to agricultural and spatial economics, one aspect is frequently disregarded: the oligopsonistic nature of...
Persistent link: https://www.econbiz.de/10014496477
Much of the land economics literature has largely ignored the spatial nature of competition and related differences between farmland rental and sales markets. In this note we propose a model for price formation in both markets under a spatial competition framework. We demonstrate that price...
Persistent link: https://www.econbiz.de/10014520277
Spatially dispersed production and processing, endemic for most agricultural or renewableresource markets, causes oligopsonistic competition. The possibility and useof spatial price discrimination in these markets is well documented. It is also wellknown that the location of processors relative...
Persistent link: https://www.econbiz.de/10009442828
Agricultural markets often feature significant transport costs and spatially distributed production and processing which causes spatial imperfect competition. Spatial economics considers the firms’ decisions regarding location and spatial price strategy separately, usually on the demand side,...
Persistent link: https://www.econbiz.de/10009446103
The firm’s price policy decision is a central issue in spatial economics. Previous results show, e.g., that the specification of consumers’ demand functions is pivotal but mostly mill and uniform pricing are compared in a monopoly setting with constant marginal costs. The results in this...
Persistent link: https://www.econbiz.de/10012244864
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This paper analyzes spatial competition on land rental markets. It contributes to the small body of literature that investigates the optimal spatial price policy under competition and extents previous work by considering economies of size. Because the consideration of increasing or decreasing...
Persistent link: https://www.econbiz.de/10010916534