000103693 001__ 103693 000103693 005__ 20210819131413.0 000103693 0247_ $$2doi$$a10.22004/ag.econ.103693 000103693 037__ $$a321-2016-11051 000103693 041__ $$aeng 000103693 084__ $$aC91 000103693 084__ $$aD81 000103693 084__ $$aD92 000103693 245__ $$aOptimal Timing of Farmland Investment - An Experimental Study on Farmers' Decision Behavior - 000103693 260__ $$c2011 000103693 269__ $$a2011 000103693 270__ $$msyster.maart@agr.uni-goettingen.de$$pMaart, Syster Christin 000103693 270__ $$moliver.musshoff@agr.uni-goettingen.de$$pMusshoff, Oliver 000103693 300__ $$a26 000103693 336__ $$aConference Paper/ Presentation 000103693 500__ $$aReplaced with revised version of paper 5/26/11. 000103693 520__ $$aOptimal timing of farmland investment represents fundamental decisions for agricultural entrepreneurs. It is known that the land price value is significantly higher than the expected present value of expected future gains. In this paper we experimentally analyze the investment behavior of real farmers and contrast the observed investment decisions with theoretical benchmarks of the classical investment theory and the Real Options Approach. Furthermore, we investigate framing effects. Our results show that the framing of the investment situation has no significant influence on the decision behavior in the experiment. Moreover, the investment behavior of farmers approximates the predictions of the Real Options Approach if they are given an equitable chance to learn from personal experience. 000103693 546__ $$aEnglish 000103693 650__ $$aAgribusiness 000103693 650__ $$aAgricultural Finance 000103693 650__ $$aFarm Management 000103693 650__ $$aFinancial Economics 000103693 650__ $$aInstitutional and Behavioral Economics 000103693 650__ $$aRisk and Uncertainty 000103693 6531_ $$aExperimental Economics 000103693 6531_ $$aInvestment 000103693 6531_ $$aReal Options 000103693 700__ $$aMaart, Syster Christin 000103693 700__ $$aMusshoff, Oliver 000103693 773__ $$q1$$o26 000103693 8564_ $$981a63037-1a19-4b0e-9787-ceb4b8f73c2c$$s219729$$uhttps://ageconsearch.umn.edu/record/103693/files/AAEA_Maart.pdf 000103693 887__ $$ahttp://purl.umn.edu/103693 000103693 909CO $$ooai:ageconsearch.umn.edu:103693$$pGLOBAL_SET 000103693 912__ $$nSubmitted by Syster Maart (syster.maart@gmx.de) on 2011-05-03T14:23:04Z No. of bitstreams: 1 AAEA_final.pdf: 224528 bytes, checksum: 47da8f8c475114f0480dc04502357389 (MD5) 000103693 912__ $$nMade available in DSpace on 2011-05-03T14:23:08Z (GMT). No. of bitstreams: 1 AAEA_final.pdf: 224528 bytes, checksum: 47da8f8c475114f0480dc04502357389 (MD5) Previous issue date: 2011-05-03 000103693 980__ $$a321 000103693 982__ $$gAgricultural and Applied Economics Association>2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania