This article investigates the role played by information, search, and bargaining cost in agricultural land markets to explain price dispersion. Based on a hedonic model under incomplete information, we build a two‐tier stochastic frontier. By linking costs of being information deficient to agent characteristics such as degree of professionalism, we identify relative price effects of buyer and seller types related to information deficiency. We compile a comprehensive data set of more than 10,000 transactions in Saxony‐Anhalt, Germany, between 2014 and 2017. We find institutional sellers to achieve the lowest losses resulting from information deficiency and sell with mark‐ups, whereas other sellers incur losses. This seller group could benefit from investments in professionalism and roughly halve their cost of being information deficient. Tenant buyers can benefit from informational advantages resulting in markdowns with lowest effects in the harvest season. We conclude that Germany's policy makers can do more to support market transparency.
Aquaponic systems are often designated as sustainable food production systems that are still facing various challenges, especially when they are considered as a commercial endeavour that needs to compete on the market. The early stages of the aquaponics industry have witnessed a number of unrealistic statements about the economic advantageousness of aquaponics. This chapter deals with these topics and discusses them critically. The latest scientific literature and current personal experiences of European commercial aquaponics farmers are taken into account on three levels: The horticulture side of production, the aquaculture side of production and the early data on the market response to aquaponics, emphasising the marketing issues and public acceptance of aquaponics. In summary, the chapter does not provide an "off-the-peg" solution to evaluate the economic performance of a particular aquaponics system. Instead it provides a broad database that enables an estimation of the efficiency of a planned system more realistically, pointing to challenges that the commercial aquaponics early adopters faced that are important lessons for future aquaponic endeavours, particularly in Europe. Authors Maja Turnšek and Rolf Morgenstern have equally contributed to this chapter.
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