The Mechanism Of Price Formation In Cultivated Land Use Right Transfer Of Chongqing City

However, the scale growth of land transfer did not change the fact that the gap inincomes of urban and rural residents continue to widen. In addition, the deep-seatedcontradictions caused by the urban-rural dual structure have become increasinglyprominent. Institutional imperfections hinder the effective transfer of land use rights,distort the rural land prices and finally result in damage to the interests of farmers.Exploring and building the price formation mechanism of land transfer is the key topromote rural land transfer rapidly which can achieve coordinating developmentcombined with urban and rural economic.Currently, the most research on the land transfer price is using the method ofqualitative to analysis constitute a transfer price. Researches using quantitative analysismethod are few, and most of them are based on the perspective of property rights.Chongqing as an example, the article use statistical data to analysis the status of thetransfer of Chongqing arable land use rights and transfer price features. On the basis ofthe status research, the article analysis the price formation mechanism of arable landtransfer, the main part decision-making and the price game behavior to use the theory ofsupply and demand and game theory. Based on this study, the article analysis the priceformation mechanism of arable land which make a theoretical explanation on the statusof arable land transfer price.This study forms the following conclusions. First, arable land transfer price isdetermined by the marginal revenue capacity of the both transfer. Price circulation mustbe greater than the marginal revenue of the roll-out side and less than the marginalrevenue of the transferee. The greater the marginal revenue gaps of the parties to thetransaction, the greater the range of circulation price, so the business is more likely toreach. The weak position of the transferor in the price game about Arable landtransferred result in the low price of the transfer. Asymmetric information put thetransferor in a passive position, resulting in the low transfer prices. Intervention ofadministrative means which may reduce the distribution of "surplus" will beunfavorable to the transferor. Factors to influence arable land transfer prices are socomplex and diverse than make large deviations in circulation of price. Arable landtransfer price is affected not only by their own endowments, such as location, soilfertility, topography and other natural conditions, but also related with the nationalagricultural industry policy, farmer’s endowment.Finally, abased on the price formation mechanism of the arable land transfer andthe practices in China, the article make a few reasonable policy recommendations topromote the efficiency of rural farmland transfer, the growth of farmers’ income and thedevelopment of the rural economy.