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A note on the performance measure of conservation auctions AgEcon
Latacz-Lohmann, Uwe; Schilizzi, Steven.
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%.
Tipo: Working or Discussion Paper Palavras-chave: Auctions; Procurement; Tenders; Conservation; Economic experiments; Model validation; Plus: assessment method; Agricultural policy; Environmental policy; Market-based instruments; Environmental Economics and Policy; Research Methods/ Statistical Methods; C91; C92; D44; Q24; Q28.
Ano: 2011 URL: http://purl.umn.edu/100885
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