Subsidy Incidence in Factor Markets: An Experimental Approach
| dc.creator | Nagler, Amy M. | |
| dc.creator | Menkhaus, Dale J. | |
| dc.creator | Bastian, Christopher T. | |
| dc.creator | Ehmke, Mariah D. | |
| dc.creator | Coatney, Kalyn T. | |
| dc.date | 2017-04-01T13:54:03Z | |
| dc.date.accessioned | 2026-07-09T06:49:54Z | |
| dc.description | Laboratory market experiments are used to estimate the incidence of a stylized subsidy in factor market negotiations with university student and agricultural professional subjects. In separate sessions with both groups, prices converged approximately four and a half tokens higher when a 20-token per-unit subsidy was paid to buyers; this equates to 44% of the predicted 10-token split. A proportional market incentive treatment clarifies this subsidy effect. Discrepancies between predicted and observed incidence are similar to previous empirical estimates of subsidy incidence in agricultural land rental markets. A behavioral anomaly as well as buyer–buyer market competition may contribute to experimental results. | |
| dc.identifier | doi:10.22004/ag.econ.143636 | |
| dc.identifier | https://ageconsearch.umn.edu/record/143636/files/jaae445.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/143636 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/581334 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/143636 | |
| dc.title | Subsidy Incidence in Factor Markets: An Experimental Approach | |
| dc.type | Text |