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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.

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Bibliographic Info

Paper provided by Center for Economic and Policy Studies in its series Working Papers with number 2005-01.

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Date of creation: 15 Jan 2005
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Publication status: Published in: Promoting the General Welfare: American Democracy and the Political Economy of Government Performance, Gerber and Patashnik, eds. Brookings (2006).
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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Keywords: experiments; policy evaluation; incentives;

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Cited by:
  1. Burtraw, Dallas & Goeree, Jacob & Holt, Charles A. & Myers, Erica & Palmer, Karen & Shobe, William, 2008. "Collusion in Auctions for Emission Permits: An Experimental Analysis," Discussion Papers dp-08-36, Resources For the Future.

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