A note on the performance measure of conservation auctions
AbstractWe 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%.
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Bibliographic InfoPaper provided by University of Western Australia, School of Agricultural and Resource Economics in its series Working Papers with number 100885.
Date of creation: 18 Feb 2011
Date of revision:
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;
Find related papers by JEL classification:
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
- Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
This paper has been announced in the following NEP Reports:
- NEP-AGR-2011-03-19 (Agricultural Economics)
- NEP-ALL-2011-03-19 (All new papers)
- NEP-ENV-2011-03-19 (Environmental Economics)
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