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Direct-selling farmers entrance, land allocation and profits. 

Direct-selling farmers entrance, land allocation and profits. 

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Figure 1: The spatial structure and urban pollution.
Figure 2: Direct-selling farmers entrance, land allocation and profits. 
Figure 3: Variations in agricultural productivity e and market share s...
Figure 4: Market share and supply-side competition.
Direct-selling farming under urban pollution: what impact on competition, variety and goods quality?
Research
Full-text available
  • Apr 2015
In this paper, we study how the proximity to cities affects the decision of farmers to enter the direct-selling market. We develop a spatial economic model which takes into account the externality of urban pollution on agricultural yields. We find that urbanization may foster direct-selling farming development provided that the market size effect d...
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Context 1
... finally from (28) that the equilibrium land rent is positively linked to the demand-side market effect αψλ u , but negatively related to the number of direct-selling competitors λ ( Figure 2). From (11), we calculate the price index of direct-selling goods evaluated at the short-run equilibrium, given ...
Context 2
... we allow for free entry and exit. In our framework, the market converges to equilibrium through the following mechanism: the entry of a new competitor in the direct-selling market drives profits down and induces a decrease in the direct-selling bid rent which tends to smooth over space (depicted in Figure(2)). Farmers continue to enter the direct-selling market as long as the profit they can earn remains higher than the (exogenous) equilibrium profit prevailing for conventional farming ⇡ c . ...

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