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The Role of Auctions in Allocating Public Resources

Author

Listed:
  • Chris Chan

    (Productivity Commission)

  • Patrick Laplagne

    (Productivity Commission)

  • David Appels

    (Productivity Commission)

Abstract

This paper provides an economic framework within which to consider the effectiveness and limitations of auction markets. The paper looks at the use of auctions as a policy instrument and the effects of auction design on consumer interests, the efficient allocation of resources, and industry competitiveness.

Suggested Citation

  • Chris Chan & Patrick Laplagne & David Appels, 2003. "The Role of Auctions in Allocating Public Resources," Microeconomics 0304007, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpmi:0304007
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    References listed on IDEAS

    as
    1. Cripps, Martin & Ireland, Norman, 1994. "The Design of Auctions and Tenders with Quality Thresholds: The Symmetric Case," Economic Journal, Royal Economic Society, vol. 104(423), pages 316-326, March.
    2. Cramton, Peter C, 1995. "Money Out of Thin Air: The Nationwide Narrowband PCS Auction," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 4(2), pages 267-343, Summer.
    3. Elmar G. Wolfstetter, 2001. "The Swiss UMTS Spectrum Auction Flop: Bad Luck or Bad Design," CESifo Working Paper Series 534, CESifo.
    4. Robert Wilson, 1977. "A Bidding Model of Perfect Competition," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 44(3), pages 511-518.
    5. Catherine D. Wolfram, 1998. "Strategic Bidding in a Multiunit Auction: An Empirical Analysis of Bids to Supply Electricity in England and Wales," RAND Journal of Economics, The RAND Corporation, vol. 29(4), pages 703-725, Winter.
    6. Partha Dasgupta & Eric Maskin, 2000. "Efficient Auctions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(2), pages 341-388.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Valle, Haydn & Capon, Timothy & Harris, Michael & Reeson, Andrew, 2012. "Coordination and Strategic Behaviour in Landscape Auctions," 2012 Conference (56th), February 7-10, 2012, Fremantle, Australia 124466, Australian Agricultural and Resource Economics Society.
    2. M. Iftekhar & A. Hailu & R. Lindner, 2012. "The Effect of Bidder Heterogeneity on Combinatorial Conservation Auction Designs," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 53(1), pages 137-157, September.
    3. Brett Bryan & Jeffery Connor et al, 2005., 2005. "Catchment Care - Developing an Auction Process for Biodiversity and Water Quality Gains. Volume 1 - Report," Natural Resource Management Economics 05_004, Policy and Economic Research Unit, CSIRO Land and Water, Adelaide, Australia.
    4. Atakelty Hailu & Sophie Thoyer, 2005. "Multi-Unit Auctions to Allocate Water Scarcity Simulating Bidding Behaviour with Agent Based Models," Others 0512012, University Library of Munich, Germany.
    5. Nicola Doni & Domenico Menicucci, 2014. "Information Revelation in Procurement Auctions with Two‐Sided Asymmetric Information," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 23(4), pages 952-968, December.
    6. Kean Siang Ch’Ng & Suet Leng Khoo, 2015. "Market Mechanisms To Allocate Heritage Conservation Fund: An Experimental Study," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 60(05), pages 1-19, December.
    7. Ciaccia, Gervasio & Doni, Nicola & Fontini, Fulvio, 2010. "Auctioning wind power sites when environmental quality matters," Energy Policy, Elsevier, vol. 38(4), pages 1734-1740, April.
    8. Rabotyagov, Sergey S. & Valcu, Adriana M. & Campbell, Todd D. & Jha, Manoj K. & Gassman, Philip W. & Kling, Catherine L., 2012. "Using a coupled simulation-optimization approach to design cost-effective reverse auctions for watershed nutrient reductions," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124656, Agricultural and Applied Economics Association.
    9. Domenico Colucci & Nicola Doni & Vincenzo Valori, 2009. "Dynamics in Non-Binding Procurement Auctions with Boundedly Rational Bidders," Working Papers - Mathematical Economics 2009-06, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    10. Raphael Calel, 2010. "Auctioning conservation contracts in thepresence of externalities," GRI Working Papers 22, Grantham Research Institute on Climate Change and the Environment.
    11. Raphaële Préget & Sophie Thoyer, 2009. "Multi-Unit Auctions and Competition Stricture," Working Papers 09-18, LAMETA, Universtiy of Montpellier, revised Dec 2009.
    12. Romstad, Eirik, 2012. "Truthful revelation in nonmarket valuation," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126724, International Association of Agricultural Economists.
    13. Nong, Duy & Siriwardana, Mahinda, 2018. "Potential impacts of the Emissions Reduction Fund on the Australian economy," Energy Economics, Elsevier, vol. 74(C), pages 387-398.
    14. Atakelty Hailu & Sophie Thoyer, 2007. "Designing Multi‐unit Multiple Bid Auctions: An Agent‐based Computational Model of Uniform, Discriminatory and Generalised Vickrey Auctions," The Economic Record, The Economic Society of Australia, vol. 83(s1), pages 57-72, September.
    15. Holmes, William B., 2017. "Environmental services auctions under regulatory threat," Land Use Policy, Elsevier, vol. 63(C), pages 584-591.
    16. Laura Brown & Elizabeth Troutt & Cynthia Edwards & Brian Gray & Wanjing Hu, 2011. "A Uniform Price Auction for Conservation Easements in the Canadian Prairies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(1), pages 49-60, September.
    17. Nong, Duy & Siriwardana, Mahinda, 2017. "Australia’s Emissions Reduction Fund in an international context," Economic Analysis and Policy, Elsevier, vol. 54(C), pages 123-134.
    18. Trapnell, Lindsay & Malcolm, Bill, 2014. "Expected benefits on and off farm from including lucerne (Medicago sativa) in crop rotations on the Broken Plains of north-eastern Victoria," AFBM Journal, Australasian Farm Business Management Network, vol. 11, pages 1-22.
    19. Markus Groth, 2009. "The transferability and performance of payment-by-results biodiversity conservation procurement auctions: empirical evidence from northernmost Germany," Working Paper Series in Economics 119, University of Lüneburg, Institute of Economics.
    20. Krishna Pant, 2015. "Uniform-Price Reverse Auction for Estimating the Costs of Reducing Open-Field Burning of Rice Residue in Nepal," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(3), pages 567-581, November.
    21. Rousseau Sandra & Moons Ellen, "undated". "Auctioning Conservation Contracts: An Application to the Flemish Afforestation Policy," Energy, Transport and Environment Working Papers Series ete0606, KU Leuven, Department of Economics - Research Group Energy, Transport and Environment.

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    More about this item

    Keywords

    Australia; Research; Ascending-bid auction; Auctions; Bidders; Conservation funds; Descending-bid auction; Dutch auction; English auction; Environmental Management; First-price sealed-bid auction; Infrastructure; Markets; Oral auction; Outcry auction; Pollutant emission permits; Power supply contracts; Public resources; Radio- spectrum; Second-price sealed-bid auction Spectrum licences; Vickrey auction; Water rights;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D2 - Microeconomics - - Production and Organizations
    • D3 - Microeconomics - - Distribution
    • D4 - Microeconomics - - Market Structure, Pricing, and Design

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