---
entity_slug: agricultural_price_differential
entity_type: Relation
vsm_system: S2
type_rationale: The agricultural price differential represents a structural dependency
  between market proximity and economic advantage, functioning as a causal mechanism
  that links transportation costs to producer profits.
vsm_rationale: This price differential operates as a coordination mechanism that transmits
  location-based cost advantages through the price system, helping to coordinate the
  spatial allocation of agricultural resources around urban markets.
classified_at: '2026-02-23T10:41:28.540951'
---

# Classification: Agricultural Price Differential

## Entity Type

Relation

## VSM System

S2

## Type Rationale

The agricultural price differential represents a structural dependency between market proximity and economic advantage, functioning as a causal mechanism that links transportation costs to producer profits.

## VSM Rationale

This price differential operates as a coordination mechanism that transmits location-based cost advantages through the price system, helping to coordinate the spatial allocation of agricultural resources around urban markets.
