Modeling an auction mechanism for land

Abstract

For the agriculture sector in general, the process of transformation involves the two inseparable issues of land privatization and farm restructuring. This means that, although admittedly, the task of designing a privatization process is difficult, the foremost criteria that most of the transforming economies need to address is a transfer of ownership and its corresponding assets that leads the market closer to efficiency, if not at the most efficient level, coupled by the creation of a market process that promotes competition and dynamic adjustment in the farming sector. This is important in, as well as after the privatization process, for these countries have an agriculture sector that employs the major share of the total labor force (Csaki and Lerman, 1996). This means that, as in the case observed in many developing countries, the development in the sector has a strong bearing consequences in the development of the economy.