A note on the performance measure of conservation auctions

We argue that previous assessments of discriminatory-price conservation auctions may have systematically overestimated their performance relative to uniform-payment schemes due to an inappropriate counterfactual comparison. We demonstrate that the cost curve (and not the bid curve) is the relevant supply curve when a uniform payment is offered and provide a theoretically rigorous counterfactual based on that insight. We estimate that the performance of BushTender may have been overrated by more than 50%.


Issue Date:
Feb 18 2011
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/100885
Total Pages:
10
JEL Codes:
C91; C92; D44; Q24; Q28
Series Statement:
Working Paper
1104




 Record created 2017-04-01, last modified 2017-08-26

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