Procedurally fair collective provision: its requirements and experimental functionality
This paper derives and justifies a procedurally fair bidding mechanism and reviews experiments that apply the mechanism to public projects pro- vision. In the experiments, not all parties benefit from provision, and the projects' costs can be negative. The experimental results indicate that the mechanism is conducive to efficiency, despite the multiplicity of equilibria and underbidding incentives. The only condition is that the cost of the most efficient project must be positive.
|Date of creation:||10 Sep 2013|
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- Werner Güth & Anastasios Koukoumelis & M. Vittoria Levati & Matteo Ploner, 2013. "Providing negative cost public projects under a fair mechanism: An experimental analysis," Jena Economic Research Papers 2013-021, Friedrich-Schiller-University Jena.
- Güth, Werner & Vittoria Levati, M. & Montinari, Natalia, 2014.
"Ranking alternatives by a fair bidding rule: A theoretical and experimental analysis,"
European Journal of Political Economy,
Elsevier, vol. 34(C), pages 206-221.
- Werner Güth & M. Vittoria Levati & Natalia Montinari, 2012. "Ranking alternatives by a fair bidding rule: a theoretical and experimental analysis," Jena Economic Research Papers 2012-005, Friedrich-Schiller-University Jena.
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- Werner Güth & Anastasios Koukoumelis & M. Vittoria Levati, 2011. ""One man's meat is another man's poison." An experimental study of voluntarily providing public projects that raise mixed feelings," Jena Economic Research Papers 2011-034, Friedrich-Schiller-University Jena.
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