Between Path Dependence and Path Creation: The Impact of Farmers' Behavior and Policies on Structural Change in Agriculture

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Farm structures are often characterized by regional heterogeneity, agglomeration effects, sub-optimal farm sizes and income disparities. The main objective of this study is to analyze whether this is a result of path dependent structural change, what the determinants of path dependence are, and how it may be overcome. The focus is on the German dairy sector which has been highly regulated and subsidized in the past and faces severe structural deficits. The future of this sector in the process of an ongoing liberalization will be analyzed by applying theoretical concepts of path dependence and path breaking. In these regards, key issues are the actual situation, technological and market trends as well as agricultural policies. The methodology will be based on a participative use of the agent-based model AgriPoliS and participatory laboratory experiments. On the one hand, AgriPoliS will be tested as a tool for stakeholder oriented analysis of mechanisms, trends and policy effects. This part aims to analyze whether and how path dependence of structural change can be overcome on a sector level. In a second part, AgriPoliS will be extended such that human players (farmers, students) can take over the role of agents in the model. This part aims to compare human agents with computer agents in order to overcome single farm path dependence.