Figure 4 - uploaded by Alfons Balmann
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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 returns of additional land and the endogenous choice of...
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Context 1
... we set and to exemplify the effects of decreasing and increasing costs for additional land. Figure 4 summarizes the results for prices and the slope parameter of the price distance function, i.e., the degree of spatial price discrimination . 2 We observe more or less the same effects with a positive value of the quadratic term ( ) in , e.g., we conducted simulations for where the minimum of is close to the farms location ( ). ...
