Implementing the efficient auction: initial results from the lab

Margolis, Michael

doi:10.1016/s0165-1765(04)00064-3

Cited by 1 publication

(1 citation statement)

References 4 publications

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“…However, these findings should be taken with caution, as they were derived from our experimental auctions that only used one random draw from each subject's eight bids. To check the robustness of the finding, we simulated all possible auction sessions using the recombination approach (Margolis and Shogren 2004). We first generated all possible combinations of bids that could have been drawn within each original auction group.…”

Section: Fig 3 Distributions Of Bids By Treatment and Number Of Neigmentioning

confidence: 99%

Performance of Agglomeration Bonuses in Conservation Auctions: Lessons from a Framed Field Experiment

Liu

Yang

et al. 2019

Environ Resource Econ

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The incorporation of an agglomeration bonus payment to encourage spatial coordination in auction mechanisms to allocate payments for ecosystem services (PES) contracts has been explored as a promising innovation that could enhance the effectiveness of PES schemes. Empirical evidence on the performance of this particular design feature is scant, and almost exclusively derived from laboratory experiments using student subjects. This study reports results from a framed field experimental auction allocating PES contracts with and without agglomeration bonus payments using actual forest land owners in rural China as subjects. We find tentative evidence that, in a PES auction that provides agglomeration bonuses, subjects tend to bid less in anticipation of receiving bonus payments when their neighbours are also successful in the auction. In addition, we have mixed findings as to whether the agglomeration bonus is able to induce a bidding pattern in favour of contiguous conservation. The two sets of results convey some encouraging signals of the theoretically postulated cost-effectiveness and conservation efficacy of the agglomeration bonus. Further research from the actual field is warranted in light of the policy significance of this innovative incentive mechanism.

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Section: Fig 3 Distributions Of Bids By Treatment and Number Of Neigmentioning

confidence: 99%