Conservation tenders: linking theory and experiments for policy assessment

Auction theory has mostly focussed on target-constrained auctions and is less well developed for budget-constrained tenders, which are the norm in environmental policy. This study assesses a theoretical model developed for budget-constrained tenders in its capacity to predict tendering performance under information deficiencies typical of field applications. If complemented by laboratory experiments, the model is able to make the correct policy recommendation when comparing the tender to an equivalent fixed-price scheme, even with poor predictive accuracy. This holds even if the policymaker has only limited information on the model’s key input variables.


Issue Date:
2013
Publication Type:
Journal Article
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/233836
PURL Identifier:
http://purl.umn.edu/233836
Published in:
57, 1
Australian Journal of Agricultural and Resource Economics
Page range:
15-37
Total Pages:
23




 Record created 2017-04-01, last modified 2020-10-28

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)