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An Experimental Basis for Public Policy Initiatives

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Abstract

Advances in communications technology and the impetus for deregulation have stimulated the development of new types of markets, some of which are implemented by public agencies on very large scales, e.g. national broadcasting spectrum auctions. In other cases, policy issues arise from the consideration of an economic reorganization of an existing market, e.g. a merger. This paper surveys the use of laboratory experiments in the development and testing of these new types of economic activity, and for evaluating possible effects of changes in existing markets. Specific applications to be considered include: auctions of landing slots, broadcasting bandwidth licenses, tradable emissions permits, and irrigation permits.

Suggested Citation

  • Charles A. Holt & William M. Shobe & Angela M. Smith, 2005. "An Experimental Basis for Public Policy Initiatives," Working Papers 2005-01, Center for Economic and Policy Studies.
    • Handle: RePEc:vac:wpaper:wp05-01
    Note: Prepared for the Conference on “Promoting the General Welfare: American Democracy and the Political Economy of Government Performance,†University of Virginia, January 2005
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    Cited by:

    1. Dallas Burtraw & Jacob Goeree & Charles A. Holt & Erica Myers & Karen Palmer & William Shobe, 2009. "Collusion in auctions for emission permits: An experimental analysis," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 28(4), pages 672-691.

    More about this item

    Keywords

    experiments; policy evaluation; incentives;
    All these keywords.

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • H4 - Public Economics - - Publicly Provided Goods

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